sorry if this is the way u tried it already but i found this on an xp ng.
"The Windows XP compatibility update available today for EZ CD 4.02 works! I
downloaded it and installed EZ CD 4.02 and Direct CD and both are working
great! Here's what I did:
1) Download and install the Compatibility update from the WinXP update site
and install. Reboot after installation.
2) On reboot, begin the EZ CD installation. Ignore the compatibility warning
by clicking "Continue".
3) Install EZ CD 4 first. Add the 4.02 update on the setup floppy (at least
my copy came with an update floppy!).
4) Ignore the compatibility warning (again) and continue to install Direct
CD. DO NOT REBOOT when prompted.
5) DO NOT INSTALL TAKE TWO!
5) Install the Direct CD 3.05 update (available from the Roxio site as a
download). Reboot after the updater completes it's installation.
I've been working with Direct CD running for a couple of hours and
everything is working like a charm! I've been able to format CD-RW's, drag
and drop files to the disk.....the whole nine yards!"
this was dated in the beginning of november. i personally havent used 4.02 on xp because i have 5.02. if you dont use direct cd, dont install it. ive heard conflicting results and you're better safe then sorry.