tv_news_guy went a long way to show the correct way how to install Windows XP and MSP.
I would like to add a few extra points.
The first hardware driver to add should be any motherboard drivers (if applicable). I used to have a Asus K7V (slot A Athlon days) and needed to install an AMD processor patch and VIA 4-in-1 drivers. This might not be an issue with modern motherboards.
Also if Video_guy is having so many problems it might be worth creating a dual-boot setup where MSP is the only software on it. This will minimise the possibility of conflicts.
This is how I currently work. I started off with my working Windows XP system, created a new partition using BootItNG (
www.bootitng.com) and installed Windows XP, SP2, drivers (motherboard/video/sound/LAN), ZoneAlarm (just in case), no antivirus, MSP (8.0/DirectX), MSP Service Pack 1. At this point I took a partition image using BootItNG so I can re-install rapidly in a disaster. My video files are on an external USB2 300Gb hard disc that is kept away from the machine (in case of PC theft). Using BootItNG again I created a simple boot menu with "Video Editing" and "Normal Machine". Not only are the possibility of conflicts reduced but also your video editing setup will be much leaner and hence faster/more stable.
sjj1805 has a long (excellently detailed) post on setting up a hardware profile
http://phpbb.ulead.com.tw/EN/viewtopic.php?t=13950 but this is really like dual-booting within Windows rather than a true dual-boot where the 2 Windows setups are completely separate. If you are suffering conflicts a true dual-boot should be preferable.
Hope this helps anyone, especially Video_guy