If Winodws was just installed that would most likely have been from a bad install where some setup files were never fully copied to the drive. One option for XP to correct that type of problem besides a full reinstallation would be the repair install method out lined in the article seen at http://www.michaelstevenstech.com/XPrepairinstall.htm
The repair install method is best used on an installation where you have everything else intact and in use for a period of time. For a fresh installation the best option there would be a full install if no working solution is found. How are you going into the DM through the control panel or simply right clicking on the MyComputer icon?
