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I am surprised that I am the only one with this issue?
Everything that has been mentioned resolved the issue for everyone else so we are running out of ideas. I would look further at your network. I am not talking about errors in event logs.
Are you running any other protocol besides TCPIP? Maybe IPX or NetBEUI?
If you have unnecessary protocols, get rid of them.
Do you have any other client defined like NetWare or IBM CA?
If you do, play with the bindings and move them down in provider order.
Check your DNS real close. Make sure you don't have any rogue records. Check the PTR records too.
Make sure your DC's are properly registered in WINS. Try building an LMHOSTS file as a test.
Run a network trace to see what is going on.
What is common to all the XP clients besides the fact they are XP? Were they all ghosted from the same image? Do they have identical NICs? Are there failed devices in Device Manager?
Rest assured there are lots of us using XP and our logon scripts run each and every time. Mind you, I have AD and launch my script via GPO rather than legacy.
I can understand your frustration. Sorry for the 20 questions.
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Give a man a fish and he will be back for more. Slap him with a fish and he will go away forever.