I just tried my digicam's movie function yesterday (first time) and everything worked as it should. I attached the camera, went through the Wizard, downloaded all the files (.mov and pictures) I wanted, deleted the rest...and my camera is good for another round.
If I had received the error message you have appeared to receive, my first thoughts would have been:
a. I don't have enough free space on whatever drive/partition I'm trying to download to.
b. The .mov file is corrupt and XP cannot do anything with it, other than delete it.
Yesterday, I saw two posts in this forum that bespoke of corrupt files on memory cards, so it just might be a corrupt file that you have experienced.
Nothing but guesswork on my part.
Hopefully, someone is closer to the truth than I can be.
If you were capable of downloading same file on another system, then that would seem to point to your download location. Could be insufficient space, could be that the drive/partition needs error-checking and/or defrag.
I don't know of any "setting" that would/could vary from system to system regarding downloading of images/files from cameras. I suppose that a driver or some system file could be corrupt on your system...in which case, sfc /scannow would be a potential solution.