Lol then turn the settings down or reformat...I'm gonna keep giving you generic options with such little detail
What services are running in the background? Disable them if you don't use them. There's seriously a lot of tweaking you can do to XP to optimize it for gameplay. Search google with the link I gave you.
Was it running at a decent rate at anytime, or are you just installing it now?
If your defragmenting with Windows defragger...ouch, check out Executive Software Diskkeeper
Once a day is pretty redundant, I would recommend maybe once or twice a week. Remember that the disk is only fragmented based on how much data has been added/removed/moved and daily is like if your going through 2GB of data a day
I'm no expert, yet let others know what I've asked above, and maybe they can help you out.