Most media players, and indeed virtualdub, will be able to play avisynth scripts back as video -- it acts as something called a frameserver which in turn fakes being an AVI file as far as the player is concerned with basic codecs/standards (which most things in turn load and will load, have had some trouble with windows media player in the past and sometimes with media player classic with some of the codec packs out there). If you start getting way into the weeds with high end filters and stacking videos it might not do real time but the average trim, splice, crop, resize, border, title card, text overlay, image overlay (be it logo, insert or ken burns effect to pad out a scene) and basic colour tweak (full bore colour correction is more of a fun thing, oh and you can do basic keying/greenscreen with it as well) that most video editing entails for most things then it will be fine is the base machine can handle the playback (don't know what the XP machine is but if it is trying to decode 4k H264 on a netbook... yeah).
I am not sure what features virtualdub has that are so valuable (outside of capture options) -- it had nice trim options and input-output for filters, which for the term were quite impressive, and the playback/input could be resized happily enough.
Its annoyances for compiling lists of videos in a more modern editing sense (as opposed to a segmented TV capture/footage typical of a home video camera of the day where you just wanted a big file, maybe losing some adverts), trimming them all and then wanting to tweak the trims and ordering, features a timeline (most things in the pro, semi pro and high end open source world -- kdenlive if you happen to have a Linux setup is great) or clip based (I really do like avisynth's approach here) editor can trivially handle is what has me questioning.
On avisynth most of the baseline feature set was if not shared code then made to behave similarly and use a similar terminology (
http://avisynth.nl/index.php/Internal_filters should look quite familiar). It can also use vdub external filters (
http://avisynth.nl/index.php/Plugins ) if somehow it is not replicated internally or in a more avisynth focused version of the filter (
http://avisynth.nl/index.php/External_filters ); most things will be but there might be some obscure thing or you might want the jank of an old filter for your purposes (best way to fake that 90s look is to use 90s equipment and all that, hopefully you are not dealing with interlaced footage).
https://gbatemp.net/threads/be-a-great-video-maker-and-replicate-this-video-effect.360509/ has some applied stuff if you wanted that. Should have a copy of the GBA intro logo sendup around here somewhere as well I made for the video reviews.