HARDWARE WIZARD CANNOT FIND THE DRIVER SOFTWARE

Unplug the printer from the PC.  Then use the System Restore and restore the PC to a date PRIOR to first attempting to install the Printer.  This will give you a "fresh start" point to start over.  System Restore can be accessed from Start/Programs/Accessories/System Tools. 

Before you start the install again, make sure you have the correct drivers for your operating system.  If the correct Win XP drivers are not on the install disc go to the Brother site and download the correct Win XP drivers and use them (actually it might be a good idea to go to the Brother site and download the latest drivers whether you have XP drivers or not on the install CD - many times there are updated drivers on vendor's downloads).  When you start the install process, DO NOT physically connect the printer until the Brother install program tells you.  If you connect the device first either it will fail or Windows could install incorrect drivers.

Thanks Fireberd

should have included that in the list of actions I have already taken. 

I have tried that twice to two different dates but still get the same problem.

Try the updated drivers from the Vendor as suggested.

Have tried that Fireberd but no change in situation.

Have also successfully installed printer on my laptop which is the same as PC.

Do you think it could be a registry problem?

I don't know about a registry problem (and I don't like or recommend the registry repair programs).  If it was a registry program the System Restore would have taken care of any problem.

Next step would be Brother tech support and see what they say.