Have FS2002 fully installed onto our system that had a clean XP Home Edition on it and (so far) it runs like a charm. (P-IV @ 2 GB, 512 megs RAM.)
Sorry to hear XP and FS2002 has compatability issues with some users. Our XP was a Toshiba "tweaked" pre-installed version. I wonder if that made a difference? Anyway it works well.
I did experienced one "lockup" with it though...I installed the A320 Professional add-on (WOW! Check it out!) and while running the "tutorial flight" to the Canaries, just as I had it levelling-off at FL330, I created an "emergency diversion" for the "fun" of it (actually the wife said dinner was about to be served!). Anyway I entered a new destination just like in the real MCDU but just as I was to intercept finals it pooched and I had to re-boot. I wrote it off as me exceeding the limits of what the designers of the A320 program wrote into it, that's all.