I got my work in XP by editing the driver .inf file. It seems Desire is not listed in it.
Modify the android_winusb.inf file in the adt \ android-sdk-windows \ usb_driver folder.
I added the following lines to the appropriate NTx86 or NTamd64 section.
; HTC Desire% SingleAdbInterface% = USB_Install, USB \ VID_0BB4 & PID_0C87 & MI_01% CompositeAdbInterface% = USB_Install, USB \ VID_0BB4 & PID_0C87 & REV_0100 & MI_01
This worked great for me.
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