I have a couple ideas to try to see if it will help narrow the problem down.

Run Windows in safe mode and try and run Xara X10 and see if you get the same problem. If the problem does not occur then you have a process that is normally being loaded that is interfering with Xara.

Other idea is to download the trail copy of Xara X16 and install it. Do you get the same error on launch? This will tell you if you have an issue with X10 or something else.

Ray