Microsoft released a new whitepaper from the Microsoft Solutions for Security and Compliance group (MSSC) on "Applying the Principle of Least Privilege to User Accounts on Windows XP". You can download it here or read it online here.
I was privileged to be one of several reviewers of the paper a couple of months ago. It is definitely a much needed addition to the non-Administrator/Limited User Access (LUA) literature. Please take a moment and review for an understanding how to run with least privilege in a Windows XP environment.