I don't know anything about this group, but you don't get much hit in google with the misspell (it should be Z. graminifoliUM). But there aren't so much info, neither. According to this old literature, Lance is right; growing on tree fern is reported (it is unlikely that they have thoroughly studied the habitat, and it may be based on only a few observations):
http://books.google.com/books?id=Bh...v=onepage&q=Zygopetalum graminifolium&f=false
The distribution map here shows that they are from São Paulo, Rio de Janeiro, Minas Gerais, Espirio Santo:
http://e-monocot.org/taxon/urn:kew.org:wcs:taxon:216059, but actually the text says that it is from São Paulo and Rio de Janeiro. The text seems to be more consistent with the data in this web page:
http://www.delfinadearaujo.com/estados/brasil.htm You can click each state to see the list of orchids in each state.
But my understanding is that the habitat around this region could be somewhat variable from atlantic rain forest to seasonally drier area (e.g., rupicolous laelias). According to Hawkes Encyclopaedia of Cultivated Orchids, it is intermediate to hot, but no other interesting info like elevation. He uses 3 categories, C, I, and H, where the daily low temp defines them: C=45-50F, I=55-65F, H=65-70F.