I never liked Hyper-Terminal for use as a video terminal (e.g. vt100). I would look into something like Tera Term if you can't get Hyper-Terminal to work. <i>http://hp.vector.co.jp/authors/VA002416/teraterm.html</i>. I have yet to try it with XP but it seems to work fine for me on 2000.

You might also want to try to see if you can get a copy of the old MS DOS program Telix working under XP.