Now dual boot is working fine :)
I'd downloaded missing drivers from lenovo website for ethernet, wireless, sound and video. But the windows plug and play was unable to find them. I was pointing search in WIN2K folder instead of XP [C:\DRIVERS\WIN\ETHERNET\WINXP].
My friend downloaded the correct Ethernet driver and got plug and play wizard to find it. Once on internet, finding and installing remaining drivers was taken over by plug and play wizard.
The lappie was up and running in less than 10 minutes. After this followed, service packs download and so on. Am elated to have it fixed and working seamlessly with Xubuntu.