1. Are you following the proceedure EXACTLY as detailed in the manual?
This is the LEAST straight-forward driver install proceedure that I have seen.
2. Are ALL other programs shut down?
This includes your virus scanner and any other program that runs in the background.
Start by clossing as many programs as possible in the system tray.
Then, open the task manager (Alt-Ctrl-Del)
The only program that you NEED open is Explorer.
At this point, the driver files and registry keys may be corrupt. You may need to un-install the driver. Or manually go through the files and remove ONLY those related to the camera.
Another possability, is that you need 1 or more of the XP compatability updates from Microsoft.
Chas