This instance of GTA IV is version 1.0.4.0, not the newest, but considered the standard for GTA4 patching; going beyond (to 1.0.7.0) makes most mods unusable. I have run this exact installation very well on my new GeForce 560 SE. And will leave this issue to the dustbin of history as someone along the way was right, saying, HD4000 is a very competent mild-gaming video device, and GTA IV, no matter how competently HD4000 played it before it crashes, is absolutely not a mild-game. This game has serious load issues and i suspect your drivers have overly protective perceived infinite looping guards that are simply being exceeded here. I've no further concern on this subject, though I will continue to look for driver upgrades that address XP issues if you do.
Thanks for your interest.