Can you clarify, does the editor run ok, but when you try to launch an actual game nothing happens?
Or does the editor itself fail to load?
Yes, it failed to load (as when you double click the executables and nothing happens at all, and this after installing the program itself).
Sorry for the late reply. I did a cleanup of all my .NET applications using a freeware ".NET Cleanup Tool" and reinstalled all the Frameworks from 1.1 to 3.5 (including their SP updates). Now AGS runs and loads properly, prompting me to the "new game wizard" and such on its first run. Simply I discovered that actually my 2.0 Framework installer got corrupted due to a patch my Windows automatically downloaded many months ago, making me to clean all the MSI and Frameworks and manually reinstalling them afresh from Microsoft's site.
So, yes, it works now in my Win-XP SP2. It was just a problem of my Frameworks' register in the end. Solved I apologize for any inconvenience I might have caused.