Creative got back to me. This is what they had to say...
"Do the Windows XP generic drivers install in the system ok, or does it only fail when you try to update? If the Windows XP drivers fail, that would indicate a problem with the operating system, rather than the sound card."
Well, the answer to that is my Windows XP drivers fail.
So, having said that, does anybody know how I can replace my corrupt drivers from my XP CD? Or off the web?