Larry,
PDv1 was OK, but PDv4 was outstanding, but still limited in functionality. You can do better, but OK, try this:
Under Windows XP, right-click the PD icon and select PROPERTEIS. Go to the COMPATIBILITY tab, and mark PDv1 to be run as compatible with Win95. See if that works. The problem lies with the new coding for WinXP which PD was not designed to work with, just like many old device drivers from manufacturers suddenly made many pieces of hardware obsolete.
Also, if you UPGRADED, I have found that you must follow the FULL INSTALLATION path, which will reformat your HD. The *upgrade* path of patching an old Windows OS to make it act like XP simply doesn't work and will cause many problems with many programs.
Best regards,
Walt
"Life is a Zoo!"
<http://home.comcast.net/~lifeisazoo>
Way cool step by step PhotoDeluxe graphic tutorials