[shantanu]

have you also tried updating the motherboard chipset drivers.. (well i suppose you must have)

then is your windows Genuine.. (if yes) then try to update the DX (libraries)
if GTA vice city is also giving problems then it is possible that the board drivers are not very compatible with Xp.. (by default) you can write this issue to INTEL.. and i guess many members on this forum did report it..(AFAIR)