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Didn't see the reformat part the first time i read it. The question is, did you put SP2 back on after you reformatted or was it the original XP still giving you problems? The fact that it's working on that god-aweful ME tells me that it's not a hardware problem.
My money is still on it being SP2/firewall related, unless the reformat was with vanilla XP, in which case I have no idea.
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