Hello,
Did you add the XP system to the domain and is Server 2003 set up to be a domain controller for the domain? I think the second question is yes if you have set up active directory and added users. If you need to add the xp system to the domain right click on My Computer and Under the TAB for computer name change the computer from being part of a workgroup to a member of a domain. You will have to have a domain administrators username and password to connect the computer to the domain.
rch1231
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Make sure that the client DNS settings for your XP computer is pointing ONLY to the DC and not your router or ISP DNS servers. If your client queries any DNS server other than a DNS server that has a zone with AD information, it will not be able to locate your DC(s).
JorgeM
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