(I’m a Canon user, not Nikon, so I’m getting this info from the Nikon website.)
First you need to install the Nikon View software, which should install the driver more or less automatically. (I assume that the CD should start the install menu automatically when inserted, but it might not be the latest version, so see if you need a download from the website; see below.) For Windows XP, you need to select "PTP" as the USB mode. You might want to download the most recent version and any needed updates from this page <
http://support.nikontech.com/cgi-bin/nikonusa.cfg/php/enduse r/std_alp.php?p_sid=Y2Nn-nSh&p_lva=170&p_li=&p_p age=1&p_cv=1.185%3B2.u0&p_pv=2.56&p_prods=19%2C5 6&p_cats=185&p_hidden_prods=&prod_lvl1=19&pr od_lvl2=56&cat_lvl1=185&p_search_text=&p_new_sea rch=1&p_search_type=answers.search_nl>. Currently, it looks like version 6.2.6 is the most recent (you can download full version of 6.2.1, and upgrade for 6.2.6).
If, after rebooting, the computer doesn’t recognize the camera, this page <
http://support.nikontech.com/cgi-bin/nikonusa.cfg/php/enduse r/std_adp.php?p_faqid=4611&p_created=1054546732&p_si d=Z9e6WnSh&p_lva=170&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PS ZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MTAmcF9wcm9kcz0xOSw1NiZwX2NhdH M9MTgxJnBfcHY9Mi41NiZwX2N2PTEuMTgxOzIudTAmcF9zZWFyY2hfdHlwZT 1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MQ**&p_li=&p_topvi ew=1> has instructions for installing the driver when it didn’t install with Nikon View.
After installing, you will probably want to UNinstall the plugins that Nikon installs in Photoshop without asking you; these plugins can interfere with the operation of Adobe Camera Raw (which you should also update to the latest version, if you haven’t already).