I thought I used to have to install the ByteBlaster driver manually when I'd first use the Quartus Programmer on a new Windows XP machine. I didn't find the instructions for that where I think they used to be, so maybe the driver is supposed to be installed automatically now. If something went wrong with the automatic installation, http://www.altera.com/support/kdb/solutions/rd09232004_4627.html?gsa_pos=4&wt.oss_r=1&wt.oss=bblpt might help. It's for an issue before Quartus fully supported Windows XP SP2, but the instructions there might solve your problem.