I recently reofrmatted and had similar problems, the solution???
XP SP2, it might be security crazy but it works. Also run microsoft update manager, if not to install XPSP2 just to download all the patches and updates, there were 40 odd for me, since i formatted back to Xp 2002 so there was 5 yrs of essential updates to download, try it, if it don't work someone else might be able to think of something
2.1 Ghz Core 2 Duo processor :: nVidia GT150m :: 15.6" HD LCD :: 4gb RAM :: 320gb HDD
New player: iPhone 4 32gb