It could very well be. Are you running Deskengrave in a Dos box? I haven't got Deskengrave but have experienced it with another dos based program that was originally designed to tutor students gcode. The graphics overlay of XP is different than dos or the previous OS's like win98 and millenium. It is a pity though, but if you want to go to the trouble and depending on your desktop, you could install dos on the same computer with an OS boot facility that will let you choose which OS you want to boot up with. Does Deskengrave export dxf or gcode?"
You could also try this, rightclick on the Deskengrave .exe file and choose properties. Under Compatibility, tick the option "run in Win95 compatibilty". It's a long shot, but might work.
Whacko