Just done a fresh install of win xp and find i am getting stealth at shields up using windows firewall .Can this be correct
Sure. The Windows firewall is perfectly okay for inbound protection. You would probably get "Stealth" even without any software firewall at all, as long as you have a cheap router with basic firewall protection.
Yep, Win Firewall is fine for inbound as mentioned. Just don't expect it to watch any outgoing traffic... for that you need one of the other software firewalls or one of the HIPS that also watch outbound..
For the inbound shields up test, you will receive an "all stealth" result. But try it with the leak test on the same site and you will get a "fail" result. http://www.grc.com/lt/leaktest.htm