I was having problems with DIV working with XP earlier aswell , always getting 1010 error. Now i fixed it i use these settings.
BIOS - change LPT port settings to EPP.
DEVICE MANAGER : NEVER USE AN INTERUPT - ENABLE LEGACY PLUG & PLAY.
HAVE USERPORT.sys in same DIR as DIV 8.X.
After using those settings i havnt had a problem.