With Kalyway you got the crappiest image what is out there. Try Leo4All V3 or perhaps the new Leo4All V4.1 which installs 10.5.4, but I havent' tested this yet.

If you are Windows XP and OS X you don't need an external boot selector, you can use the one from WinXP. There's a little fix on the boot.ini neccessary.

Here's an installation guide from me: http://www.infinitemac.com//showthread.php?t=1234
It seems a bit complex but this system is very safe, you can restore after nearly every crash.

What about your hardware? Does your CPU command set support the SSE3 chipset? The Venice and San Diego cores of the 3200+ support it, the Newcastle and Winchester cores doesn't. Is your gfx card a PCI-E gfx card? I would highly recommend to une OS X interally. USB is extremely slow, it won't be fun.