It seems like a problem with .Net Framework.
Windows XP is supported. Several beta testers use Windows XP.
Can you try to install B4J:
www.b4x.com/b4j ? I wonder whether you will get the same error.
It is also worth checking the event viewer for any additional information.
This is the version that I'm using on a Windows Server 2003 and it works:
Click on the small link to check your version.