The log says that you do have GAs installed, but it also says that the VM is suspended, not shut down. I suggest shutting down the VM properly (not saved state), then restart. Also, I suggest setting the guest RAM to 1GB. A 32bit XP VM has no use for 3GB RAM.
How did you install the GAs? If it wasn't done in safe mode then I suggest turning off 3D acceleration.
Originally, I did do the GA install for 3D acceleration in Safe Mode. I read elsewhere that the mouse problems were due to the 3D acceleration, so I uninstalled the GA in Safe Mode, then reinstalled the GA in normal mode, with 3D acceleration turned off.
I'll lower my memory settings, though I expect that won't have any effect on this issue.
Though the mouse problem may be related to restoring a saved VM, I have also seen this error during a normal boot-up. I have also saved VMs & restored them for weeks without the mouse issues on my old motherboard.