Well the next steps I would take would be these John:
1. Run windows in safe mode and see if the problem still occurs,
Shut down your PC, wait 30 secs and restart and Press F8 for the startup menu to appear - Choose Safe mode. Restart your PC to exit Safe Mode when done.
2. Run System File Checker to check for missing/corrupt/incorrect file versions of windows system files,
You will need the XP disc for this - Not sure if a Restore disc will work with this method! Slip the CD in the drive, now click Start, pick Run and in the box type: cmd (enter) A new black window appears with a flashing cursor.
Now type this: sfc /scannow (enter)
SFC will now check for errors, this may take some time! If it finds any issues fix them and once finished shutdown and restart to see if this fixes your problem.
3. As a final step i'd backup my important docs and then either hit a restore point or last known good configuation to see if this fixes the issue.