Suggested proper order to install XP, its updates/drivers/patches and applications.
More detailed.
1. XP
2. SP1
3. IE 6, SP1
4. DirectX 9.0b
5. Chipset drivers
6. Video Card Drivers. (run disk cleanup)
7. NIC/Modem Drivers and ISP software
8. Windows Update, Internet Explorer service packs, updates
9. Windows Update, Critical Updates (till there are no more)
10. Windows Update, Other Updates. (don’t load unnecessary items)
11. Windows Update, Drivers.
12. Other Drivers (try to automatically update first) (run disk cleanup)
13. Major applications. Fully update each application before installing the next.
14. The rest of your apps. (run disk cleanup)
15. Anti-Virus software and update it.
16. Configure email, move My Documents to another drive
17. Cleanup System Tray, organize Start Menu.
18. Safe Mode, disk cleanup (advanced) and defragment.