First of all let's clear up some misunderstandings.
Generations v8.5 is *not* Windows XP compatible.
Generations v8.5a is the *only* version of Generations that *is* Windows XP compatible.
Your v5.2 .uds family files are compatible with v8.5a. Do not use GEDCOM to transfer data from and to Generations. Use your .uds family file which will not result in the loss of any data. You can also use GEDCOM if you must but it is not recommended because you may lose data. Yes, v8.5a creates direct line register reports.