There's, of course, nothing wrong with you still running Windows XP on your computer, even if your machine is a powerful one loaded with an Intel Core CPU.
New display drivers are still being developed for the old faithful OS and even more, they support both Sandy Bridge and the newer Ivy Bridge processors. So, here's the good news in detail: you can now download and install the latest Intel HD Graphics drivers for your CPU and Windows XP.
You'll be getting the 5421 build of the software, dubbed 184.108.40.20621 for the 32-bit version of your XP and 220.127.116.11.5421 for the 64-bit edition, respectively. The rendering error in World in Conflict has been fixed and you'll no longer see parts of the terrains as multicolored tetrahedrons.
At the same time, the new driver version brings some fixes for minor bugs encountered with external DVI displays and DP monitors, while the small offset errors with certain displays have also been corrected.
Download the Intel HD Graphics Display Driver 18.104.22.16821 for XP
Download the Intel HD Graphics Display Driver 22.214.171.124.5421 for XP64.