I've got a 2007 8 x 3.0GHz Mac Pro with a 23" Apple Cinema Display going via an Apple ADC->DVI adaptor.
With the factory fitted ATI 1900XT and Boot Camp 2.0 / XP SP2, everything was fine (except the ATI graphics card either overheating or attempting levitation every once in a while, but that's par for the course).
Upgrading to Boot Camp 2.1 (without doing XP SP3), and suddenly I'm getting the same dim monitor as the original poster. Installing "real" ATI drivers and the ATI CCC tool didn't do anything (there were brightness controls in the drivers, but they made the picture awful, unlike the keyboard-based brightness mac users are used to). Installing XP SP 3 made no difference.
So I re-installed everything (in terms of Boot Camp / XP SP2). Back in Boot Camp 2.0, it's rosy again. Install Boot Camp 2.1 (without any Windows updates at all over and above XP SP2) and the problem is back.
Re-installed all the Boot Camp / Windows stuff (each time reformatting by the way), this time having swapped the ATI 1900XT for an Apple Nvidia 8800GT. Although the mac no longer attempts vertical take off, and although I can now hear a pin drop, the picture issue remains: Boot Camp 2.1 dims the monitor, and nothing (in XP) can fix it. So it's not a specific graphics card issue, as it's happening under ATI and Nvidia cards.
As the original poster said, you can go back into Mac OS X, use the keyboard (or brightness settings in the Displays System Preference), and you're fine in Mac OS X. But go back into XP and it goes dim again. Interestingly it's not immediately dim in XP, it happens when the boot camp system tray icon (those things down by the clock in XP) loads... up until that point the monitor is fully bright in XP, assuming you'd just previously fixed it in Mac OS X prior to booting.
The solution for me was along the lines of what Moonlight Mac was suggesting: go into Mac OS X with everything plugged in normally, chuck the brightness up to your preferred amount, then remove the USB cable belonging to the DVI->ADC adaptor (which for me was going straight into the back of the mac). This prevents the mac pro (or you) from being able to adjust the monitor's brightness. Now boot into XP and you can actually see the desktop.
Aargh it's horrible, turn the lights back off! 😉
Although it provides a makeshift fix, the disadvantages are:
[1] You still can't adjust the brightness in XP, you have to go Mac OS X -> plug cable in -> adjust brightness -> remove cable -> reboot into XP. For me I want it at full brightness all the time, so this limit doesn't bother me.
[2] You're a USB socket down on the deal (the ADC monitor & ADC->DVI adaptor give you 2 sockets and take up 1 (in the mac), whereas now you only have that 1 (in your mac).
So it looks like an issue between Boot Camp 2.1, and the ADC->DVI adaptor (or the Apple Cinema Display). The original poster suggested re-installing the Boot Camp 2.0 drivers, but I didn't attempt this so can't say if rewinding to Boot Camp 2.0 (rather than reinstalling, which was the path I took) works in my config. The reason I didn't want to stay on Boot Camp 2.0 was because 2.1 made the 802.11n Airport network actually usable under XP (fine in Mac OS X of course), and that was more important to me than the 1x USB socket that I have to sacrifice using my fix.
Hope this helps,
Ken
p.s. very glad to find this post as Google & Apple Support searches hadn't been turning up anything. I thought I was going mad 🙂