Technically speaking VM XP and normal XP are not the same. Your VM XP works through the use of emulation and there is no guarantee that whatever work on normal XP will work on VM XP. Software-wise, you may be able to install it on VM XP but running that particular software in VM XP and have it used with a non virtual device is a different matter. I have yet to know why my Sonic RecordNow software doesn't detect my DVD/CD burner to burn files.
Anyway back to your issue, it look like you have a sound issue, what device is it that u are attaching via USB? speakers?