With Windows XP, installation and hardware configuration has never been easier. The installation of new hardware and the recognition of hardware devices during the installation process has never been so easy and reliable.
The Windows 2000 Factor
What do you do if XP is unable to find a driver for your device? Windows XP is based on an enhanced Windows 2000 kernel, so 2000 drivers should work in XP, but this is not always the case. I loaded one system that had a Wacom board with a 2000 driver, and no matter what I tried, I was unable to find a suitable driver for this component. I disconnected the unit and am waiting for an XP driver update.
The .vxd drivers used in Windows 98 are not supported at all by Windows 2000 and Windows XP. Using these drivers could create more issues in Windows XP, and you should stay away from them. Check your device manager, and disable those devices that have yellow cautionary flags if you are unable to locate an appropriate driver.
Now that XP has been officially released on the market, manufacturers of those components that are lacking compatible drivers should be issuing those drivers in the near future. Keep checking those manufacturers' websites. When the driver become available, enable those devices, and update the drivers.