I've had this error actually. Because my ThinkCentre has built-in speakers and Audacity doesn't like it, i plugged in some speakers in mine and error go away for me and unplugging them doesn't trow the error after. BTW Audacity 2.1.3 is the last "officially" supported version on XP, 2.0.6 is for XP without any Service Packs as they say in their website