Seems either the Xerox Xd130 drivers, or the picturemate drivers work fine, until SP3 is installed, then it starts blue screening. Remove them, and it works fine.
After going through all this, it took lots of time, invested lots of money, most of which I did get back.
That said, it could fail tomorrow. I can see where as IT guys, unless you have a huge box of parts from that time, it is MUCH wiser to get rid of the entire setup, and move to a new platform, even if it is much more expensive.
In particular when you use consumer grade parts you are more likely to really be better off
dumping the entire setup, and moving to another, more modern platform.
Watched movies for a couple hours on it, no problems.