dont worry, just there was no "autorun" when the usb was plugged in, stupid me.
I went to harware properties and selected the unknown usb device and installed the software and its all good.
I installed a full version of xp, installed touchscreen drivers and it worked fine.
I then installed the nlite version of xp and minlogon and then installed the touchscreen drivers for xenarc and when i plug the usb plug for the touchscreen nothing comes up saying new touchscreen hardware like it did before.
I know the usb works because i used a memory stick, so the usb drivers not working is out of the question.
How do you guys that have nlite windows + minlogon make your touchscreen work (i dont think minlogon has anything to do with the touchscreen not working but)
by the way im using the safe settings of nlite from the thread in this forum, i think its post #28 or something like that, thanks.