G'day Burner-Z,
Did you try the solution above your post ??
At my last LAN party it affected about 5 players also all running Win XP as well, changing the refresh rate value to 1 ran the game straight away for them.
& are you absolutley sure you placed the files in the 1.2 crack / fix correctly in your game folder.
i.e. BF1942.exe & BF1942.org in your BF1942 directory
& the mod.dll file in your Battlefield1942>mods>bf1942
directory. Ensure you get a replace file window option & click
yes. Dont extract the RAR 1.2 crack into your game folder as it
wont work.
The other file GameSpyHost.dll is only required if you intend playing online....otherwise dont replace it.
Also..... if youv'e simply copy / pasted a game directory at a LAN party over the network from someone else's PC (naughty you), it wont run full stop as it does not pick up the registry entries. You'll need to do a fresh install from the original discs. Then apply the 1.2 patch & then the 1.2 Crack / Fix.
Goodluck............