I'm sure this is just a driver that installed incorrectly or some error in the registry due to a crash or unexpected operation, the blue screen probably is an IRQ not less or equal error.
You can try to boot into VGA mode (press F8 when booting, when you get the boot menu, VGA mode is an option).
Personally I love Windows XP and it works as long as you know how to take care of it and accept that sometimes it will go fubar but all is not lost. I had this exact same thing happen to me a few days ago. For myself I had the windows partition backed up on a separate drive so I just did a raw copy of the partition over but I understand this isn't feasible for most users. I would recommend doing a windows XP repair operation if you have the original disk.
Here's the best guide to that:
http://pcsupport.about.com/od/operat...txprepair1.htm
That should repair your windows installation and leave all your files and settings and installed programs perfectly intact. Remember to run windows update again yourself because you'll likely need to get service packs and fixes for security vulnerabilities but I always turn off automatic updates. I do it manually from
www.windowsupdate.com