Python - 186 chars
def f(g,W):w=g.find("\n")+1;L=len(W);print" --> ".join("row %s, column %s"%(x/w+1
,x%w+1)for i in range(len(g))for j in(-w-1,-w,-w+1,-1,1,w-1,w,w+1)for x in(i,i+(L
-1)*j)if g[i::j][:L]==W)
testing code:
grid="""A I Y R J J Y T A S V Q T Z E
X B X G R Z P W V T B K U F O
E A F L V F J J I A G B A J K
R E S U R E P U S C Y R S Y K
F B B Q Y T K O I K H E W G N
G L W Z F R F H L O R W A R E
J A O S F U E H Q V L O A Z B
J F B G I F Q X E E A L W A C
F W K Z E U U R Z R T N P L D
F L M P H D F W H F E C G W Z
B J S V O A O Y D L M S T C R
B E S J U V T C S O O X P F F
R J T L C V W R N W L Q U F I
B L T O O S Q V K R O W G N D
B C D E J Y E L W X J D F X M """.lower().replace(" ","")
f(grid,"codegolf")
f(grid,"serverfault")
f(grid,"superuser")
This version is 196 chars and accepts the grid without doing any extra tweaking
def f(g,W):w=g.find("\n")+1;L=len(W);print" --> ".join("row %s, column %s"%(x/w+1,x%w/2+1)for i in range(len(g))for j in(-w-2,-w,-w+2,-2,2,w-2,w,w+2)for x in(i,i+(L-1)*j)if g[i::j][:L].lower()==W)
testing code:
grid="""A I Y R J J Y T A S V Q T Z E
X B X G R Z P W V T B K U F O
E A F L V F J J I A G B A J K
R E S U R E P U S C Y R S Y K
F B B Q Y T K O I K H E W G N
G L W Z F R F H L O R W A R E
J A O S F U E H Q V L O A Z B
J F B G I F Q X E E A L W A C
F W K Z E U U R Z R T N P L D
F L M P H D F W H F E C G W Z
B J S V O A O Y D L M S T C R
B E S J U V T C S O O X P F F
R J T L C V W R N W L Q U F I
B L T O O S Q V K R O W G N D
B C D E J Y E L W X J D F X M """
f(grid,"codegolf")
f(grid,"serverfault")
f(grid,"superuser")
