This is due to the power settings of XP, or your Laptop. Try the following
first.
Click on Start > Click on Run > type powercfg.cpl > click on OK.
This will open the power configuration dialog, in one of the tabs you should
find the setting for what to do when you close the lid of your notebook.
If this does not work then it is likely that you have a setting enabled in
yout BIOS that does exactly the same thing. If you are unsure on how to
enter the BIOS either consult the manual/website of your manufacturer or
come back here with the Notebook Make and Model.
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Regards
Greg Palmer
MS-MVP Windows (Shell/User)