I am using acer aspire 1 laptop with intel atom processor and ms xp os.
I have problems with pictures in internet. it is coming faded. The problem is not there with high resolution pictures. The problem is more in websites like orkut, cricinfo etc..

I have used the very same Laptop but couldn't able to see the problem. Have u atta hed any Digital Camera or mobile to your Laptop? Do u have Antivirus installed on ur Laptop?

No, no camera or mobile is connected with the laptop. I have macAfee installed and updated daily. Also my inbuilt webcam is not working. The icon is not showing in my computer. I think its a driver problem or damaged webcam, and I dont know if it has something to do with the color problem..Please help me to fix my webcam also..

Also when I open google image search, the google logo is coming in black and white and faded. Is there any problem with the colour settings

Try one thing Go go Acer Aspireone site. Download The Latest VGA (Graphics) Driver. Uninstall Graphics driver from your Computer. Restart your Pc. Install Latest Driver to your computer. That might help.