It does work, but IIRC there is a specific way you have to set them up before they will work properly. I know this problem has been posted before. Try doing a search using Control Manager or CH Control Manager.
As for having them recognize in WindowsXP, do you have SP2? If so make sure you have the latest version of CM, ver. 3.5. Without this version in SP2, you may have problems. Also, while CH tells you with Win95 - Me to disconnect the devices while installing the software, in Windows 2000 - XP you have to have them plugged in when you install the software. It's good that you used the CHdelete, as sometimes CM doesnt uninstall completely and this can screw up a later install attempt. Also make sure you have your AV software turned off before you install it, as this can interfere with a proper installation as well.