That's proper for HD Audio and I will stop there since the reset of why is on the internet.
As to disabling that, no. Don't do that. Read this link and if your driver install order was wrong, sound can go missing. There is no known quick fix. I start over. Maybe the web has better ideas. And I make a big assumption you got the drivers from the laptop maker too.
-> http://forums.cnet.com/7726-7587_102-2699006.html notes the audio driver anomaly. Order matters.
The suggestion to get a real XP SP3 cd did the trick, mostly. I was able to install XP using the BIOS IDE mode, no SATA driver was required.
My only outstanding issue is the sound driver.
When I have sound working, I have two sound devices: The AMD HMDI sound device, and the Realtek sound device. The Realtek sound device handles the internal speaker. The problem is that when I reboot, the Realtek device disappears, leaving only the AMD HDMI audio device.
There are two "Microsoft UAA" devices shown in the control panel. The first seems to be associated with the AMD audio device, and the second seems to be associated with the Realtek device. I have to delete the second UAA device and then "scan for hardware changes" to activate the Realtek audio. This works until I reboot, then the Realtek device goes away.
I have tried the following things:
1) Set the Realtek device as the default sound card. On reset it is missing again.
2) Disable the AMD device. On reset it is enabled again.
3) Disable the first UAA device. This results in no sound devices being detected at all.