Hooray!
After a week of fiddling with these laptops and a three days of Minecraft installations and troubleshooting, we overcame a big hurdle. We were experiencing errors at startup:
Microsoft Visual C++ Runtime Library
Runtime Error!
Program: C:\Program Files\Java\jre6\bin\javaw.exe
abnormal program termination
Turns out the solution was simply to change the screen resolution. Our older machines, I guess, just couldn't handle what we were throwing at it. Once we switched the resolution right down to 800 x 600.
Alternatively, if you maximize the window before logging in, you can avoid the runtime error.
For those more up to speed with these things than me, here are the specs for the laptops we're using:
Windows XP Pro v.2002 sp3
Intel Pentium processor 1600MHz
221MHz, 1.0 GB RAM
There is an NVIDIA GeForce 4200 Go control panel for the display, so... um, whatever that contributes to the overall picture.

800 x 600 WIN
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Hey. Do you use the edu version? We installed it manually (as the auto install didn't work) and get that done updating screen (or something to that effect) but it won't load the edu version. When I force updates I believe it just runs the regular version without the edu mod 🙁 Any suggestions?
@mr_isaacs
I donated and have a copy of the EDU version but haven't yet played with it. Have had some issues with getting it to run - errors again, have to play with it some more. Perhaps a manual install will help. It is very promising and my students were excited by the capabilities when we watched the promos together. I'll keep you updated when we get it all sorted.
Cheers
M
If you have not already fixed this, it sounds to me like you are not running the launcher, you are running Minecraft. You need to run the MinecraftEdu launcher and then choose MinecraftEdu to run it.
Yay. It worked. I had the same error as shown in your screen shot. I have the same grahics card. Had reduced the screen size down to really small, than when start minecraft it works.
Thanks
Super! Glad it worked for you. Happy Minecrafting!