I agree with either using chemicals or heat to destroy insects and bacteria. If you use heat, I'd soak the wood overnight and then put it in the oven. One place suggested wrapping it in aluminum foil with a bit of water in it as steam is an incredible disenfectant.
One thought though, are you putting this grape wood in a terrarium or leaving it out? I have noticed that in a terrarium setting it doesn't take long for the grape wood to develop fungus and mold. However, it may also be because I haven't quite regulated my air circulation in my terrarium quite right either (still waiting for my newer stronger fan and experimenting with humidity).
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