As I said in my comment, you can adjust the grid by choosing the coordinates on the line with grid in it:
\documentclass{standalone}
\usepackage{tikz}
\begin{document}
\begin{tikzpicture}
\draw[loosely dotted] (0,-1) grid (3,1);
\draw[x=0.5cm,y=1cm, ultra thick, red]
(0,1) cos (1,0) sin (2,-1) cos (3,0) sin (4,1) cos (5,0) sin (6,-1);
\end{tikzpicture}
\end{document}
Your second \draw line changes the scale of the x axis to 0.5cm instead of 1cm as is the default. So (3,1) on the first line is the same point as (6,1) on the second line.

If you just want to interpolate points on a curve smoothly, you can use the plot command of tikz like so:
\draw[x=0.5cm,y=1cm, ultra thick, red]
plot[smooth] coordinates {(0,1) (1,0) (2,-1) (3,0) (4,1) (5,0) (6,-1)};
There is a tension key that adjusts the curviness of the smoothing but frankly I couldn't get anything that looked better to me than the default.

Another option would be to use Bézier curves. However, in specifying a Bézier curve between two points, two additional points are needed. These two describe the velocity vector coming out of and into each point.
\draw[x=0.5cm,y=1cm, ultra thick, red] (0,1)
.. controls ([xshift=\dx]0,1) and ([xshift=-\dx]2,-1) .. (2,-1)
.. controls ([xshift=\dx]2,-1) and ([xshift=-\dx]4,1) .. (4,1)
.. controls ([xshift=\dx]4,1) and ([xshift=-\dx]6,-1) .. (6,-1) ;

You'll notice I took advantage of the symmetry to eliminate the coordinates along the $x$-axis.
gridline to the corners of a rectangle that encloses the curve. Can you explain more what you mean by "sketch" vs. "plot"? Do you want something that looks hand drawn? – Matthew Leingang Apr 18 '13 at 10:24\draw[loosely dotted] (0,-2) grid (4,2)for example. – Thruston Apr 18 '13 at 10:55