Hi, This isnt a problem with drivers or any setup related issues, but can instead be traced back to this thread:
http://forum.xbmc.org/showthread.php?tid=27366&page=2
In short: FX5200 is lying it doesnt support OpenGL 2.0 and mostly just offloads everything to the CPU. When using shadermodel 2.0 (which XBMC does) it just seems to render a green screen. D4rk fixed a simmilar problem like this one once but has since then coded a new rendering path that uses shaders to achive a number of fancy features (I think, I didnt have the time to get my head completely around the code). This can be observed by checking out svn rev 10133 which will compile and render fine (I think, cant remember if i made som modifications on my own, it may jump to 100% cpu usage).
Some notes of interest, nVidia recomends agains using the OpenGL version string to determine manufacture:
"OpenGL developers should not query and parse the GL_RENDERER string returned by glGetString to determine if a given GPU supports NV3x-based or NV4x-based functionality and performance. Instead, query the GL_EXTENSIONS string and look for the GL_NV_fragment_program2 and/or GL_NV_vertex_program3 substrings. These extensions imply the functional feature set of NV4x-based GPUs."
I have tried this and it works reliably on my machine, but the code has changed so much since then that I wouldnt know where to start on a fix for the current render path. Im also unsure if Team XBMC is interested in supporting Geforce FX and older cards, im sure it would be possible to write a video rendere based on OpenGl 1.5 specs, but not wether its worth the effort.