Rules Question

I admit there is a somewhat selfish reason for this question, and given its ultra specific nature I figured I could put it here and should the STs decide to hold it for Round Table that would work, or it can be worked out whenever.

What does a grapple impose upon the victim? What limitations does it grant(that are not situation specific) on the grappler?

Nowhere in Laws of the Wild, and as far as I'm aware, in any of the Mind's Eye games is grapple specifically defined. In Laws of the East under Martial Arts(soft style) some grapple penalties are outlined.

Werewolf the Apocalypse(3rd Edition) says the following:
"Grappling is the act of seizing and holding an opponent with the intent to immobilize or harm him. A grappling attack intended to damage an opponent is called a clinch; an attack meant to immobilize is called a hold.
Either attack begins with the attacker succeeding in a Strength + Brawl roll. Success indicates that the attacker has grappled his opponent. If the attack is a clinch, the attacker may inflict damage equal to his Strength beginning the turn after he begins the grapple. If the attack is a hold, the target is held until his next action.
When a character is on the receiving end of a grapple, she has two options. The first is to escape, which requires a resisted Strength+Brawl roll. At the Storyteller's option, defenders may roll Dexterity instead of Strength to escape a clinch or hold. If the attacker wins, the grapple continues. If the defender wins, she pulls free. The other option is to reverse the hold. Doing so requires the same roll as escaping, but to reverse the hold successfully, the defender must beat her attacker by at least two successes."

The way I have run it thus far:
- Make a Physical Challenge, retest Brawl, against the defender. Success places the victim in a grappled state.
- The grappled target cannot move while they are grappled, and are limited in their physical actions, until they break free of the grapple, which requires another Physical Challenge, retest Brawl.

Weapon traits typically do not apply as bonus traits towards a grapple challenge. "Limited physical actions" are at ST discretion, and usually correlate to the type of grapple being performed. Someone wrapping their arms around your legs means you won't be able to kick, but possible still punch. Someone bear hugging you would prevent punching, but not necessarily kicking, and so on.

I haven't run any damage-inflicting rules regarding grapples.

What you are describing isn't a grapple, though, that's a grab. Grabbing your wrist is not a grapple, nor is physically holding onto any part of the body.

Grapple is entwining my body with yours to make motions not happen.

It's something we can talk about. We've limited most maneuvers for the sake of combat simplicity in a social-based game.