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All the documentation I can find on that error claims that it only appears in Windows 98 -- which obviously is a problem since you've upgraded to Windows XP. This probably means that a driver or system file from Windows 98 was retained and is being used (or attempted to be used) by Windows XP. The only solution I can offer is to perform a backup of your Files and Settings using the Windows XP Files and Settings Wizard. Then perform a fresh clean install instead of an upgrade (this may involve deleting the partition and starting over). Once Windows XP is re-installed, you can restore your Files and Settings.
This may not result in exactly the upgraded system you wanted, but it will guarantee that you will not have legacy drivers and system files.
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