Drakan does seem to have issues with Nvidia cards & XP. Mine was also working on my old ATI card and failed to work after I upgraded to a 6600GT. Going by various forum posts, Drakan also seems to have problems with ATI cards as well but for the majority, ATI are the best cards to use with this game.
I think the problem is with Drakan, not XP or Nvidia cards but there again, XP didn't exist when the game was developed & future patches were canned since the Drakan franchise was taken over by Sony. The only things we have are player made patches such as above. This is probably why no-one makes levels anymore since the level editor / Drakan is so crash prone on XP.