We all know that Windows XP likes to keep itself held together, and how it doesnt like you uninstalling certain components.
Well The Picture and Fax Viewer, is one of these programs which can cause problems if removed incorrectly.
It can be disabled safely as follows:

Goto Start >> Run, type regedit and click [OK]
Navigate to :
HKEY_CLASSES_ROOT/ SystemFileAssociations/ image/ ShellEx/ ContextMenuHandlers

then delete the Folder ShellImagePreview under ContextMenuHandlers

Note: If you want to restore the Picture and Fax Viewer :
Create the ShellImagePreview folder and create the String Value (Default) Assign it the value {e84fda7c-1d6a-45f6-b725-cb260c236066}

NOTE: This tweak doesn’t uninstall the program. It removes the association and therefore it cannot be run.

Warning :Modifying REGISTRY settings incorrectly can cause serious problems that may prevent your computer from booting properly. Alpha Computer support,Inc. Cannot guarantee that any problems resulting from the configuring of REGISTRY settings can be solved. Modifications of these settings are at your own riskā€¦