To keep Windows XP up to date and compatible with newer applications, turning on Automatic Updates is not always enough. There are a few things you may need to check and update manually in order for Vectorworks to run properly. Microsoft .NET Framework:
You should update the .NET Framework on Windows XP to the most current version (3.5 sp1 at the writing of this article) regardless of which version of Vectorworks you intend to use.
In Start > All Programs > Windows Update,
you should select Custom:
On the left, click "Software Optional", you may see more than one .NET update available, select all of them then click Review and Install Updates, then Install Updates.
Windows XP has had 3 major service packs released in its history. Service Pack 3 in particular adds large compatibility improvements as well as an increase in overall speed and efficiency across the board.
To verify that you have Service Pack 3, go to Start > Right click on My Computer and click Properties. Under the general tab, it will list which service pack you have.
If it does not list a service pack here, you do not have any of the three and you should go to Start > All Programs > Windows Update to install them. Graphics Drivers:
Windows XP is not nearly as advanced as Windows Vista or Windows 7 when it comes to locating and installing the most up to date drivers automatically, often this has to be done by hand when they are found to be out of date. Instructions for doing this can be found HERE.