Cannot ping network due to secondary nic, can I force traffic w/ static route

I am puzzled why this doesn't work. I have a XP machine with two network cards.

Nic 1 runs to my lan: 192.168.1.21 255.255.254.0 gateway: 192.168.1.1

Nic2: this runs directly to a device with a hard coded ip that cannot be changed. 192.168.0.3 255.255.255.0

Now if I try to ping from the pc that has the 1.21 IP I cannot ping anything with a 0.x ip address. But I can with a 1.x ip.

If I disable the nic 2 with the ip address of 192.168.0.3 everything works fine.

For testing I replicated the setup on my windows 7 pc and it works perfectly fine enabled/disabled.

Here is the route from the 1.21 pc:

===========================================================================
Interface List
0x1 ........................... MS TCP Loopback interface
0x3 ...00 13 95 0b 17 2c ...... Intel(R) 82567LM Gigabit Network Connection - Packet Scheduler Miniport
0x20002 ...00 60 65 16 32 43 ...... Intel(R) PRO/1000 PL Network Connection - Packet Scheduler Miniport
===========================================================================
===========================================================================
Active Routes:
Network Destination Netmask Gateway Interface Metric
0.0.0.0 0.0.0.0 192.168.1.1 192.168.1.121 20
127.0.0.0 255.0.0.0 127.0.0.1 127.0.0.1 1
192.168.0.0 255.255.255.0 192.168.0.200 192.168.0.200 10
192.168.0.0 255.255.254.0 192.168.1.121 192.168.1.121 20
192.168.0.200 255.255.255.255 127.0.0.1 127.0.0.1 10
192.168.0.255 255.255.255.255 192.168.0.200 192.168.0.200 10
192.168.1.121 255.255.255.255 127.0.0.1 127.0.0.1 20
192.168.1.255 255.255.255.255 192.168.1.121 192.168.1.121 20
224.0.0.0 240.0.0.0 192.168.0.200 192.168.0.200 10
224.0.0.0 240.0.0.0 192.168.1.121 192.168.1.121 20
255.255.255.255 255.255.255.255 192.168.0.200 192.168.0.200 1
255.255.255.255 255.255.255.255 192.168.1.121 192.168.1.121 1
Default Gateway: 192.168.1.1
===========================================================================
Persistent Routes:
None

Here is the route from the windows 7 pc that works regardless if the nic is enabled/disabled:

===========================================================================
Interface List
18...00 13 3b 0c 37 7d ......Realtek PCIe GBE Family Controller
11...b8 ca 3a 96 f8 6d ......Intel(R) 82579LM Gigabit Network Connection
1...........................Software Loopback Interface 1
12...00 00 00 00 00 00 00 e0 Microsoft ISATAP Adapter
19...00 00 00 00 00 00 00 e0 Microsoft ISATAP Adapter #2
22...00 00 00 00 00 00 00 e0 Microsoft Teredo Tunneling Adapter
===========================================================================

IPv4 Route Table
===========================================================================
Active Routes:
Network Destination Netmask Gateway Interface Metric
0.0.0.0 0.0.0.0 192.168.1.1 192.168.1.26 266
127.0.0.0 255.0.0.0 On-link 127.0.0.1 306
127.0.0.1 255.255.255.255 On-link 127.0.0.1 306
127.255.255.255 255.255.255.255 On-link 127.0.0.1 306
192.168.0.0 255.255.254.0 On-link 192.168.1.26 266
192.168.0.0 255.255.255.0 On-link 192.168.0.3 266
192.168.0.3 255.255.255.255 On-link 192.168.0.3 266
192.168.0.255 255.255.255.255 On-link 192.168.0.3 266
192.168.1.26 255.255.255.255 On-link 192.168.1.26 266
192.168.1.255 255.255.255.255 On-link 192.168.1.26 266
224.0.0.0 240.0.0.0 On-link 127.0.0.1 306
224.0.0.0 240.0.0.0 On-link 192.168.1.26 266
224.0.0.0 240.0.0.0 On-link 192.168.0.3 266
255.255.255.255 255.255.255.255 On-link 127.0.0.1 306
255.255.255.255 255.255.255.255 On-link 192.168.1.26 266
255.255.255.255 255.255.255.255 On-link 192.168.0.3 266
===========================================================================
Persistent Routes:
Network Address Netmask Gateway Address Metric
0.0.0.0 0.0.0.0 192.168.1.1 Default
===========================================================================

IPv6 Route Table
===========================================================================
Active Routes:
If Metric Network Destination Gateway
22 58 ::/0 On-link
1 306 ::1/128 On-link
22 58 2001::/32 On-link
22 306 2001:0:9d38:953c:3814:3662:3f57:fee5/128
On-link
11 266 fe80::/64 On-link
22 306 fe80::/64 On-link
18 266 fe80::/64 On-link
11 266 fe80::2991:46d5:8531:1bfe/128
On-link
22 306 fe80::3814:3662:3f57:fee5/128
On-link
18 266 fe80::7460:5523:f480:8908/128
On-link
1 306 ff00::/8 On-link
22 306 ff00::/8 On-link
11 266 ff00::/8 On-link
18 266 ff00::/8 On-link
===========================================================================
Persistent Routes:
None

Any help is appreciated.