ok found the solution, heres what softimage says:
WINDOWS XP Pro
Windows XP Professional (including SP1)
In some cases, a HotFix is needed for a known issue with the Windows XP Professional OS noted here: Q328979 . This will resolve a cosmetic issue within XSI where the Edit Boxes appear grey instead of black (making it difficult to see text). Please click here to consult our KB article on this issue.
more here: http://www.softimage.com/Support/Xsi/Syste...s/3.5/xppro.htm