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johnnyICON -
Running XOOPS on an XP based system is a little different as by default Simple File Sharing is enabled on XP. In order to get rid of the error messages about file streams not found or not being writable, you'll need to open Windows Explorer & go to Tools| Folder Options. Click on the View Tab --- all the way at the bottom uncheck Simple File Sharing. Now, go to your web content directory, click on Properties & go to the Security Tab. Add the IUSR_MachineName account & give it Modify Permissions.
Voila - your stream errors should go away.