One way to use Matlab remotely and have access to graphics on GRACE or other machines is to use an SSH (secure shell) connection along with an X-server (a graphics-based telnet program).
From a Windows Machine
This can be accomplished on Windows machines using the freely-available software PuTTY and XMING, as discussed at http://www.cse.unsw.edu.au/~helpdesk/documentation/Putty.html
Another version of SSH is available through http://www.helpdesk.umd.edu/topics/applications/
Another free X-server is Cygwin/X
From a Mac
Doing all of this on a Mac is discussed at the UMD helpdesk
The "-X" option to ssh uses the X-server, and the "-l" option allows you to specify your login name.
Accessing Matlab on GRACE
Before typing "matlab" on the GRACE machines, type "tap matlab".
Saving Your Work in Matlab
To save a plot, use the "print" command in Matlab. For example, "figure(5); print -djeg fig5.jpg" saves figure 5 in a file called fig5.jpg in jpeg format. You can move it to another machine by email attachment or by sftp.
The Matlab "diary" command can be used to record everything you see in your Matlab command window to a file.