I will check with LSI and let you know what they say.

I have opened many files successfully in my other XP installation - MS Office docs, MPG, AVIs, JPGs. All the way up to 4 Gb AVIs...

I have managed to isolate a few directories where I am unable to copy from - that must be where the media errors lie. Not too many considering I had ~ 240 Gb of files recovered (copied).