2008LT - not fit for purpose?

[jaberwok]

Hmm. Intel integrated graphics aren't very good - however, that's for advanced modeling and so on - they're generally "adequate" for 2d work and anything you're likely to do with LT.

Are you in a position to install your software on another machine (one with decent graphics) or to install another card and disable the onboard graphics?

[thomas.glasgow]

Is your XP installation fresh and clean? Try reinstalling XP from scratch, things get messed up after 6-8months.