New person here....

http://arduino.cc/en/Hacking/HomePage

The usb connection looks like an FTDI USB>RS232 chip, does this mean it can be used as a COM port? Are the drivers built into XP?

Yes, it is a COM port, a virtual one. You'll need to download FTDI drivers. Found here: http://www.ftdichip.com/Drivers/VCP.htm