HI
WELCOME TO MY WORLD. I had EXACTLY the same problem. Here
is my solution which could possibly be yours.
I had the same error. It was cause from my Graphics card
(Radon 9600) I found out this.
The driver that came with the cd, and the latest driver
from the website REQUIRED "Windows XP Service Pack 1"
So when i installed the grahpics card with the drivers
off the cd, or the new drivers off the internet i would
recieve that error.
I would have to know your graphics card, because this
error mostly comes from faulty drivers that do not run on
your operating system. Or do not meet system requitements.
Try rolling back drivers when you are sure what is cause
the problem. But i most likly think it is the graphics
card. Please post bak with your graphics card information.