Not all DOS apps will work with XP...
This may be simplistic, but have you tried XP's Program Compatibility Wizard (part of XP's Help and Support Center)?
After the wizard scans your system, pick the balky program from the list, then choose an OS compatibility mode, basically, a setting that emulates a prior version of Windows. If you don't know which version of Windows the software requires, we suggest you try Windows 98/Me first, and if that doesn't solve the problem, try the Windows 95 mode. To skip the wizard for a particular piece of incompatible software, right-click the program's executable file from within Windows Explorer, then choose Properties. Click the Compatibility tab, check the "Run this program in compatibility modefor:" box, and choose the OS from the drop-down menu. You can also monkey with the Display Settings options; some old programs want to work in 256-color mode, for instance. To finish, click OK.
You may be able to trick DOS programs by exploitingXP's Memory setting. Many older DOS games use the Expanded Memory Specification (EMS), which XP does not support by default. Right-click the executable file, choose Properties, then click the Memory tab. Under Expanded Memory, choose Auto from the drop-down list. If that doesn't work, you may need to try other EMS settings or dig out the DOS program's documentation to see if it says anything about memory settings.
You may find some useful info in this article also:
http://www.zdnet.com.au/itmanager/technology/story/0,2000029587,20265375-2,00.htm
(delete any spaces in the URL)
Good luck...hope this helps!