Encounters a Problem when creating or opening project

I could only get V1 to work with Admin priviliges, otherwise it threw up the message "Adobe Premiere Elements has encountered a problem & needs to close"
So I have upgraded to V10, but now hit the same block even with users having admin priviledges.
Happens when I try to create a new project (when clicking OK after entering new details) or when trying to open an existing project.
When creating a new project the basic folders and files are created before the error message and crash.
I am using Windows XP SP3 with all latest updates.
So I can do nothing at all with PE10.
Error code is 0xc0000005
Flag 0x00000000
Record 0x000000000000000
Address 0x00000000196cd0a3
Any ideas?

Dear A.T., thanks for trying to help. Regarding your questions:
the PC is a single-user machine on a small network. In accordance with Microsofts security recommendations, the working user account does not have administrator priviledges
4Gb RAM of which 2.15Gb unused
683Gb free space on C:
Two internal disks, formatted NTFS
Latest Quicktime installed
Previous version of Premiere Elements was v1
A bit more information on how it fails. Approximately 10 seconds after specifying a new project or giving details for a project to open I see a window informing me that a problem has been encountered and asking if I want to send details to Microsoft. I dont know if this is Adobe or Microsoft generated.  If I click on any option then Premiere Elements disappears and a window declares "MS Visual C++, Runtime Error!, Program c:\program files\A....,   R6030 - CRT not initialised
The Windows event log records "Faulting Adobe Premiere Elements.exe - faulting module display.dll version 6.0.0.0" I found display.dll in c:\Program Files\Adobe\Adobe Premiere Elements 10 folder. So an Adobe dll is causing the problem?
So as you recommended, I updated the Intel G35 chipset driver, and that then allowed me to open create new projects and open old ones! Progress!
But, after doing some video editing, when trying to close Premiere Elements, it crashes with the same unexpected problem encountered error and the same C++ error. This time the Windows Event Viewer stated that the faulting file was Ig4dev32.dll - the new G35 chipset driver I had just installed.
So I can now create and work on projects but likely to lose my work unexpectedly!

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