So after un-installing everything and deleting all the files on the portioned drive, re-installing virtualbox 3.0.0, downloading and using the VBoxGuestAdditions_3.0.0_BETA2.iso. It still gives me the error message but not from the software. Now I think there is not enough memory to run the software. Even pushing the ram up to about 1454. It does not freeze the os, but does not finish loading.
Looks like I will just have to keep rebooting between Windows XP Pro 64 and Windows XP Pro 32.
I do love the idea of having a virtual machine that I can call up any time I want.
Thanks for all your help and I will be checking in from time to time.