Actually i have loaded it on some pretty antiquated hardware in the past. (Usually just so i could transfer data off it to a network location) I have had problems in Windows 2000 where i didnt in 98 in the past, though my hard drive failed 2 months after. After the new drive all was well.

did you try running the upgrade advisor before installing XP?
Just curious whether the laptop is on the compatability list.
Its a weird issue on this laptop.