The only problem with date/time stamping for InCD under XP occurs when the same disc is used on boxes with earlier versions of Windows and different time zones or daylight saving policies. In fact InCD is not the culprit, since the same problem occurs when synchronizing hard discs of networked computers. Apparently one way out of this difficulty could be to switch off daylight saving and keep the same time zones, shifting them manually twice a year.
I have been using consecutive versions of InCD under XP since August '02 without any major problems, and all these versions were compatible with XP according to both Ahead's announcements and users' reports.
In most cases difficulties with InCD under XP are not due to InCD itself, but to poor media and conflicts with drivers installed by other burning programs and plugins, especially those coming from Adaptec/Roxio.
To get InCD running properly on your box, you would have to provide more detailed information about burning software installed now and in the past, as well as decribe precisely your experiments. For instance, I don't know if you have EasyCD Creator and/or Nero installed, what the "0 bytes free problem" means, whether you formatted a fresh disc or an erased disc, etc.
To haunt for conflicting drivers, you should take a look at the InCD troubleshooting guide for XP http://www.cdrlabs.com/phpBB/viewtopic.php?p=43689#43689
and the related (a bit fuller) version for W2K http://club.cdfreaks.com/showthread.php?s=&threadid=60163
Run the dir commands described in the first link above and post the results here. Moreover, if you are running Nero, extract the initial system information section and the final "Existing Drivers" section from the Nero log file (look in C:\Program Files\Ahead\Nero) and post it. What does Nero InfoTool say about your ASPI layers?