I get the exact same perpetual rebooting when the PC says "new hardware found" and tries to install "WDM Audio Capture." I'm running Windows XP Home, SP2.
I've downloaded and installed both x10drivers.exe and xstream.exe with no avail.
The Device Manager shows a "X10 VA11A Video Capture" under Imaging Devices, an "unknown hardware" with a yellow exclamation point under Sound, Video, and Game Controller, and "X10 USB ActiveHome (ACPI-Compliant)" under USB Controllers, but no further X10 Products under USB Controllers.
Anyone else experiencing or have experienced this problem? If so, any solutions would be GREATLY appreciated.