Don't know how to edit my last post, so here is the update:
Reinstalled XP via the Repair Option (pop cd in, select install, not the repair console, at next screen asked about repair or new install, picked repair)
40 minutes later, XP repaired/reinstalled, everything worked like a charm.
Not...
Hmm, I had all the above mentioned problem/symptoms, just about. I proceeded to reinstall COM+ and this is what I got:
Sub-component COM+ raised an exception while processing the OC_COMPLETE_INSTALLATION setup message.
d:\nt\com\com1x\src\complussetup\comsetup\csetuputil.cpp (line 3406)...
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