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I think i have found a solution to remove optifine and the better grass fix
I will test it today and post the changes if it works
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I am having the same problem, the error i get after removing the optifine class files and changing the setting to false (or removing the option entirely) is:
Minecraft: Minecraft 1.1
OS: Windows XP (x86) version 5.1
Java: 1.7.0_01, Oracle Corporation
VM: Java HotSpot Client VM (mixed mode), Oracle Corporation
LWJGL: 2.4.2
OpenGL: Quadro NVS 160M/PCI/SSE2 version 3.3.0, NVIDIA Corporation
java.lang.NoSuchFieldError: cfgGrassFix
at ModLoader.init(ModLoader.java:838)
at ModLoader.AddAllRenderers(ModLoader.java:189)
at afq.<init>(afq.java:80)
at afq.<clinit>(afq.java:9)
at net.minecraft.client.Minecraft.a(Minecraft.java:316)
at net.minecraft.client.Minecraft.run(Minecraft.java:624)
at java.lang.Thread.run(Unknown Source)
--- END ERROR REPORT 6dd27f5f ----------