Uhm, having XP crap on another machine is usedless, cause its - most likely - a DIFERENT machine.
Your problem is, obivously, that the drivers for your ingegrated gfx (whather it is, but you SHOULD tell us) dont under W2k support the overlay well - probably the YUV modes support are missing - so:
Contact the maker of this chipset, obtain latest drivers, ask them about overlay and YUV 422 support for overlay mode and so on...
If you are willing post us some informations about your mainboard, THEN someone might help you - but for immediate solution get back to Win98se - since drivers for W98se obivusly support overlay, while the ones for w2k obivously do NOT.
:?