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1. In a small saucepan combine wine, sugar, the water, orange peel, orange juice, and stick cinnamon. Bring to boiling; reduce heat. Simmer, uncovered, for 8 minutes. Cool to room temperature.
2. Strain mixture through a fine-mesh sieve into a 2- or 3-quart metal or glass pan; discard solids. Cover and freeze about 1 hour or until edges are frozen. Scrape surface with the tines of a fork, pulling from the edges into the center. Freeze about 3 1/2 hours more or until the entire mixture resembles shaved ice, scraping the surface every 30 minutes.
3. To serve, spoon 1/2 cup of the granita into each serving glass or bowl. Top with whipped topping (if desired) and grapes.