Shtetlseeker will provide you with location as it is now. Bare in mind the correct spelling of all town/village name is correct only in its original language, in its original alphabet. Sound everything out. You will find several possibilities. Set that aside for the time being and take a good look at various maps of Eastern Europe in the time frame you are searching.
Excellent for all town/village location in Eastern Europe. Soundex search built in.
JewishGen ShtetlSeeker - Town Search http://www.jewishgen.org/ShtetlSeeker/loctown.htm
Map of the Empire of Austria-Hungary - 1895http://www.iarelative.com/maps/ah_1895/
This is a political map, that will provide you with the linguistic breakdown of the area.
The Austro-Hungarian Empirehttp://www.learn.co.uk/versailles/1919/map2.htm
At one time some parts were called Galicia.
PGSA - Galician Admin Maphttp://www.pgsa.org/galicmap.htm
This link will get you started. Click on to the country you're in, just to get oriented to the site. Use BROWSE (top left of screen...BACK & FORWARD) to navigate.
Cyndi's List - Alphabetical Category Indexhttp://www.cyndislist.com/alpha.htm
PS> Pay attn to Grandfather's religion. Was he Lutheran and had a Germanic name? Was he Prussian? Lots of sites devoted specifically to German/Polish/Russian/Ukrainian info. Was he Jewish? Extensive info available for this group as well. Was he Polish? Locating church documents important. Church/Religious Records are the key to searching this area.
FamilySearch - Family History Library Catalog http://www.familysearch.org/Eng/Library/Search/searchcatalog...