j, don't see that this in any way related.
anyway, try calling your logonscript without the %0\..\ and xp should work just fine.

in logonbatch with nt/w2k/xp the correct/recommended way to call kix:
kix32 script.kix

and for win9x:
z:\kix32 z:\script.kix

the %0\..\ basically is just a workaround for compining those.
as the %0 does not work correctly in xp, the recommend way is recommended (how that sounded so stupid...)

cheers.
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