Well, I kinda figured it out. There is something wrong with the Bluetooth stack or related software with the DELL download. The dell bluetooth module is a factory install. However, when I plug in a USB bluetooth and install the USB software that came with the USB bluetooth, then I can PAIR or connect to the LGaudio soundbar. Then when I select the Audio tab under control panel I can select the "LGaudio" device as it is now LISTED in the "down arrow", along with the Sigmatel soundcard output.
However, Now I cannot unplug the USB bluetooth and get the internal bluetooth to be recognized, --- as the drivers and software are now pointing to the USB???
Well, I guess I might as well give up on WinXP and install Win7. Win7 recognizes more stuff anyway and seems to function better than WinXP. At least I don't have to go to Windows8. Even being an IT tech, I don't like Windows8 or Win8.1