well I did the restart and reinstall. My computer is updated and I ran a virus scan. At this point I've already spent way too much time on this. Thanks for the help anyway.
Hah, back in the DOS days we'd have to edit INI files and change dip switches and sort conflicts like this every time something new came out.
*goes back to telling the kids to get off his lawn*
Seriously though, it looks like a resource conflict to me. If people are fixing it by reinstalling XP, my guess is updating your video card drivers would probably clear it right up.