My xp run on this hardware config:
6 gb hard drive, 128 mem, 300hz p II cpu. No problem at all, except for slow a bit in comparison to others. Never blue.
your hard drive, mem, and cpu specs meet xp system requirement, if not defects.
questions are: what did you do to cause the blue screen? saying dumping physical mem... doesn't explain anything. is that what the whole screen telling you? more message?