The blue line seems to be a graphics problem. This could be a bad driver for the graphics card. Reinstalling from scratch loses all the updates that have been downloaded, and often these are patches for bugs. RTG software has undergone many changes, so whilst it may have worked before when your PC was new, there may now be bugs in the OS or drivers that need fixing.
A "driver" is a small(ish) piece of software that connects a piece of "hardware", such as the monitor, to the computer software, being the OS and any program (such as a casino) being run. Monitors themselves often come with hardware "graphics cards" to take the strain off the main computer, and these too need "drivers".
First, download all the available Microsoft updates for XP. This should give you the latest version. It will automatically upgrade you to Windows Explorer 8 and service pack 3.
Next, and this is the tricky bit, you have to see if anything else needs updating. Your memory may help, try to remember if you updated anything else in the past, or whether someone helped you by doing it for you.
There are the obvious Java and Flash updates, these should update automatically, but this may NOT be operating after an OS reinstall, and it may be necessary to manually update to the latest versions of Flash and Java. Many casinos use Flash as part of the slots, often in bonus rounds and introductory movies for games. Java may be used in cashier pages.
Security settings in Internet Explorer could also be blocking certain actions because they are too restrictive.