This problem can most often be fixed by restarting the smart card using the keypad. Using the keypad, press menu until you see the word controller, then press the item key until you see restart controller, then press yes. If you see reboot rejected, ChemStation present; then you will have to turn off the main power, wait 10 seconds, then turn it back on. At this point, I usually restart all other hw, GC, PC etc.
If you are still running into the same error after restarting the MS, then the next thing to check would be the binding order of your network adapters. You want to make sure that the NIC you are using to communicate to the MS is at the top of the binding order. Here is a link to the Microsoft website that outlines how to update the binding order in Windows XP: https://support.microsoft.com/en-us/help/894564/how-to-change-the-binding-order-of-network-adapters-in-windows-xp-and
One thing I noticed on your first picture. Chemstation will not open if you have the Agilent configuration window open.
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