corrupt wizard or XP?

Last year I had a failure of my laptop's hard disk whick I replaced and then reinstalled the XP OS using the disk supplied by Dell.
Since then I have a problem with any new hardware such as a USB printer or camera that invokes the 'found new hardware wizard'(FNHW).
When the wizard starts I then have the 2 screens 'found new hardware..' and 'browse/have disk' flashing and I am unable to select anything except cancel.
Assuming the FNHW is corrupt I have been searching for a method of reinstalling it but everything I have found suggests I need to do the entire XP O/S.
Is this true? Surely a diagnostic program to restore of fix without doing the whole thing exists.
My CD version is SP1 so I would need to uninstall SP2/3 before it lets me reinstall?
If I uninstall the SPs so that I can install XP afresh will I lose all of my applications? AVG, Soundforge, Sonic drivers, Poker apps etc.?
Its a Dell Inspiron 5150
Pentium 4
2.66Ghz
256Mb RAM
80Gb HD
the printer I need to install is a Lexmark 5470 but thats not really the problem as it occurs for any new USB p'n'p device.

 

For me, I've found that installing the printer software first before plugging in the cable works best. I recommend:
1. Shutting the computer down, which means off, and not Standby or Hibernate.
2. Disconnect your printer cable from the computer.
3. Restart your computer.
4. Install the printer's software, from the supplied CD. If you've lost the CD, go to the Lexmark website and download the appropriate install program.
5. Now plug in the printer cable to the computer. Windows will then use the correct software driver and will stop bugging you with the 'new hardware found' dialog box.

 

The ultimate aim is to get it working thru my new netgear print server, the NG instructions say connect printer to usb then load the print driver before reconnecting the prt to the server. However your solution still leaves me with a duff FNHW any ideas how to fix that XP problem so that i do not have a recurrence for anything else I connect?
thanks for the prompt response

 

Most often, the problem lies with the hardware fooling Windows. USB devices are 'theoretically' contrained to behave in a certain regimented fashion. Occasionally, certain proprietory changes to the USB's internal boot code set's a bit that Windows sees as 'This device needs a special driver'. If Windows can't find the appropriate 'devicename.inf' file, then it'll typically pop up a dialog box asking for some direction on how to handle this. There are enough generic devices in Window's devicename library that most devices can at least start up. However, for devices that have more than one function, like a printer/scanner/fax machine, occasionally you'll need a specific driver.

Since you have a printer server, unless there is a way to install the 'printer driver' on the server, you'll still need to install your printer driver on each and every remote computer that wishes to use this printer. However, to make the printer/driver work, you'll have to tell Windows to connect to the print server. To do this open the Printers=>Add Printer dialog and select the Remote Printer button. If Windows can 'see' the print server then once the printer's driver is installed on your computer, you'll be able to use the printer via the server's connection.