I agree with Recale: use NTFS. Fat 32 is like keeping thermal reactors on your 2.7.
What's disturbing is it sounds as if XP is a one trick pony with any processor below Pentium 4 (or without hyper-threading). Hmmm...sounds like another Windows/Intel scam: buy the better processor and have the ability to load XP more than once.
Such a deal...