Hi GDR.
Can i straighten out one point first, WPF can create smooth and continuous motion, no worries. And if all you are creating is a desktop application with not too complex graphics then WPF is perfect for you needs. I can provide you with a small WPF application that generates circles and allows you to drag and throw them around and does collision detection between the objects, although I didn't bother doing wall detection at the time but that's easy, and there are a couple of buttons in the app that don't work. It will certainly show you how to use a continuous time 'heartbeat' to create smooth motion/animation.
It sounds to me as though WPF would be more suitable to your needs.
Write an email to gavin_w3@yahoo.com.au with GDR in the subject line and I'll fix you up with the solution. Unfortunately when I checked it, it was updated to VS11 so you'll probably need to manually build it again.
I am personally using SharpDX at the moment with DirectX 11.1, I have also used SlimDX and XNA in the past. I would not recommend XNA, nor DirectX 9. Those technologies are in support mode and the newer DirectX versions have more features and are more future proof. There is very little reason to use those older technologies when DX 11 is widely available. You have to ask yourself why you need Direct X 9 support and why you would want to use that rather than a more fully featured and more modern library. Why are you considering XP support ? No one has XP anymore. Even if one or two people can pipe up and say 'I use XP' ... it's irrelevant. Just my 2c.