Some explanation of noxcho's post.
This is because XP does not natively support DVD playback through Windows Media Player. You need to install a DVD decoder (or more specifically an MPEG2 decoder) to make this work.
One fix is VLC (see the post above) but VLC won't integrate with Windows Media Player for playback - it uses its own player.
Until a few years ago the only way you could do this was to buy a bit of decoding software (or use the software that came bundled with your DVD drive) but if you don't have any DVD software with this PC you can download and install the K-Lite Mega Codec Pack which now contains the Cyberlink MPEG2 decoder software that you need to let Windows Media Player playback DVDs as intended.
Download the pack free from:
http://www.free-codecs.com
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by: noxchoPosted on 2009-08-09 at 16:05:41ID: 25056413
Download and install K-Lite Codec Pack Full. Since then it must work for you.
Happens it couldn't help download and install free video player from here: http://www.videolan.org/
One that works excellent way for me.