Obviously you have installed a printer driver that works OK. Epson never issued specific XP ones for this model. I have it too.
Win-2k drivers for the 700 are listed, but you have to scroll down the list. Epson are not good for issuing new drivers for their printers, I have minor problems with my fairly recent 895 with XP. The XP drivers on their site are actually for Win-2k, and every time I switch the printer on, it tell me new hardware found. I e-mailed Epson, and the technician said he has the same problem. No positive solution given. The printer works fine if I ignore the new hardware found message.
Do you have any drivers for Status monitor?, if so they have to be installed after the printer drivers, or it won`t work. If not, you could try downloading any version of status monitor and try that. It will probably work.