You need to post your XML file and some screen shots so we can work out what is going on here.
Also put a link to the site you got the details for the machine, this will help us work out if the XML file is correct.
We also need the g-code file you are loading that shows the wrong size.
How do you create the g-code?
Mach3 will run on win7 32 or 64 but many of the drivers are 32 bit only so that is why Win XP is better.
I would suggest you wipe the Mach3 folder from the XP computer and do a new install using this version:-
https://www.machsupport.com/ftp/Mach3/Mach3Version3.043.062.exeIf you have a paid for licence file on your other machine copy it to this one, the one on the Chinese disk is a pirate copy and causes problems. If you do not have one use it in demo mode for now.
Make sure you put the plugin from the Chinese disk in the right place within Mach3 folder and select that on the device window.