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Check on the envirnment variables on the windows. Once you installed the "Oracle ODBC" it might have replaced the Old env. variables that can found in XP "System Properties> advance tab> environment Variables". Make sure you have the right environment variables that point to right directory locations. Update us with your findings.
More specifically, ORACLE_HOME should point to a 11.2 client or sqldev's install folder.
You can also bypass without changing your ORACLE_HOME, within a batch file (inside sqldev's folder):
set ORACLE_HOME=[your sqldev install folder]Hope that helps,