VDD stands for Virtual Device Driver error. What you have is a Windows Protection Error. With what you descirbe, it appears you have a fairly common, but serious, hardware driver error... and probably have an nVidia video graphics card.
The driver is a known bad driver, and is often automatically downloaded and updated by Windows XP as part of the automatic updates.
You need to delete the driver in the device manager, and replace it with the earlier driver. Most commonly, the bad driver is 61.76, and a good driver is going to be 56.64 or earlier.
You can download the driver from the www.nVidia.com site, or from the manufacturer of your computer.

If that doesn't work, you will need to replace the video card.