I had the same problem with the SVSYS.DLL under WinXP Pro (Beta 4). Here's how I fixed it: Select both SVSYS.DLL and SVW32.EXE, and right click on the .EXE > Properties. Under the compatability tab, I selected 'Run under compatability mode for' Win98/ME, also selected 'Disable Visual Themes' and 'Turn Off Advanced Text Services for This Program'. It now runs fine (other than I had no clue it had joystick support earlier, and was wondering why my controls for player one didn't work until I checked the SVW32.log file).
Hope this also solves your problem with the crashing DLL. Enjoy.
-Aru