So I finally was able to get my remote paired with my Windows XP PC.
For the longest time I was not able to pair it at all, there was no option to select pairing with no pairing code.
I had sometime this past Sunday and spent a few hours researching. Turns out that Windows XP just like Vista has the option to pair without a code.
The issue is that Bluetooth support came with Windows XP SP2 and only supported a few Bluetooth adapters.
If yours is not one of the supported then XP won't see it and you will have to install the software that came with your USB adapter.
The two famous ones that I saw while researching are Widcomm and BlueSoleil. I had Wincomm with my Belkin USB adapter.
These software don't give an option to pair with no code and when they are installed they take over the Windows Bluetooth stack and you won't get the Windows wizard that gives the option to pair with no code. That is why you see some people able to pair with XP and some won't. It all depends on the adapter that you have.
Now to get on with it:
1- If you have already installed the software that came with your adapater and are not able to pair with no code then first go to device manager and then look for your adapter. Follow the steps here to get the Hardware ID for your adapter.
http://www.shootingsoftware.com/Widcomm.htm
Get the Hardware ID for your adapter and then add it to the bth.inf file.
2- Once you are done with that, remove your adapter from the USB port and then uninsall the software that came with your adapter, once you do that it will remove all the instances of drivers as well (tested with Widcomm)
3- Turn of your PC and then plug the adapter and then start it up again. Once in Windows again it should automatically install the drivers for your adapter since it is in the list in the bth.inf and the Bluetooth Options should show in Control Panel.
4- Now when you try to pair, the Windows wizard will start and you will have the option to pair with no code.