There are three wifi security protocols which were widely used: WEP, WPA, and WPA2. The first two have been compromised and computers have gotten fast enough that WEP keys can be hacked in less than an hour, WPA keys in a matter of days. So you should only be using WPA2. You talk about 64-bit and 128-bit key options. Only WEP supported those key lengths. WPA/WPA2 uses 256-bit keys. So it sounds like you need to either switch your router to WPA2 mode instead of WEP, or upgrade your router to a newer one which supports WPA2-AES.
WPA2 lets you use a TKIP or AES for the pre-shared key (PSK) (there's also an option to allow both, which for security purposes is the same as TKIP). Not all hardware supported AES at the time, so TKIP was added as a way to do it in software. Unfortunately, TKIP has since been compromised. So your router should only be using WPA2 AES. Enterprise or personal doesn't matter, but most people will be using personal since you need a password server of some type if you want to use enterprise.
Windows XP didn't come with WPA2 support. It was added with SP3, but I vaguely recall the implementation being flaky. Also, if your wifi card and router are as old as XP, they might not support AES (or even WPA2 for that matter), or the implementation may be flaky. In that case, there is simply no way to securely use wifi without first upgrading your equipment.