If you boot into safe mode you can update the gfx driver with the latest one from the manufacturer, i.e. ATI, nVidia. Since your booting into safe mode you’re forcing Windows to use the standard VGA driver. I know with nVidia the gfx driver for the GeForce series is listed compatible with 2000/XP but I have never had a compatibility problem under 2K3 32bit.
Those drivers will do it to you sometimes

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