My Flip is v3.2.0 and the USB driver came with the Flip Install.

You set the hardware condition, (PSEN low, RESET low, RESET high, PSEN high with USB disconnected ).

Then connect USB, Windows XP will detect new USB hardware.

Install the 5131 driver from the Flip directory path when prompted.

Examine your success by using "UsbView.exe" . It should display Atmel as Vendor and idProduct: 0x2FFD

Alternatively examine the USB ports with "Device Manager"

You should be able to open the USB link in Flip now.

You have to do the hardware condition to set the Bootloader.
You have to connect USB only when in Bootloader condition for XP to find the hardware driver etc.

Once you have your correct driver, the hardware condition is done quite easily.

Give it another try, and please report back.

David.