Hi jegajothy.
I haven't used the ScanSnap range but have had a fair bit of experience with the 4120s and 5120s. However, I haven't seen that error before.
Are you scanning using the ScanSnap software that came with the scanner? If so, I would probably perform the following steps:
1) Ensure that you are scanning to a local folder (i.e. not a network share or UNC path)
2) Uninstall and reinstall ScanSnap software (download latest from Fujitsu's website) while AntiVirus is disabled.
3) If seperate software, uninstall and reinstall scanner drivers (download latest from Fujitsu's website) while AntiVirus is disabled.
4) Install scanner drivers and software on a seperate PC (also running Windows XP with preferably the same service pack) and test on there to see if you get the same error.
5a) If you do get the same error on another PC, try swapping out the USB cable. If that still doesn't work, then it may well be the scanner that's at fault.
5b) If you don't get the same error on another PC, then it's almost certainly a software issue. If reinstalling the drivers and software didn't work in steps 2 and 3, but yet you do not get the error on another PC, then I would guess that something is perhaps conflicting with the software and/or drivers or you have the wrong versions of some files somewhere. If this is the case, then it may well be easier to reinstall Windows than mess around for hours and hours trying to find the cause.
Hope this helps, Shaun