Great that you've got it working! I just came through a similar trial by fire(wire) with my new Yamaha i88x, and finally have it working smoothly too. A couple things I learned on XP--Firewire rather than USB, but some are useful generally (or later should you upgrade):
Don't forget to disable your wireless card if you have one! Biggie. They poll intermittently, I think, and that seems to stutter the CPU just enough to disrupt audio. And I am running a 2.8 ghz Vaio laptop (!).
Do remember to disable other unneeded background devices such an IR port, modems, NICs, etc.
Do remember to disable all the XP fancies like animated menus, etc. All eat CPU.
Kill your screen saver and go with a plain desktop background.
Be sure to be up to speed on all drivers. One thing specific to Firewire on XP: Apparently SP2 downgraded the speed of the Firewire interface (thank you, Bill) so that you can't run it at 400. There is a Microsoft patch for that specific issue. MSFT is choking your bandwidth.
Like I say, some of these are XP or Firewire-specific, but I offer them in the general spirit of man-what-a-pain-in-the-ass-it-is-when-computers-meet-music....
Congrats again and happy tracking!!