Mark: I never could get WindowsXP to activate through the internet - it kept failing saying it couldn't reach the server or something like that. But I did get the copy activated through Microsoft's dial up number - which is completely automated. You enter a cell phone number, it sends a text link to that number, on that link/web page you input the product id, and if Microsoft is happy they send you the activation code. Their system would not send an activation number for an install off of a Dell CD, but did send an activatation for an install off of a different CD.
I then installed Service pack 3. I have not installed any other Windows updates. The version of FrameMaker I installed (V 5.5) was released before XP was available, so the problems could be related to some update I should have installed for XP. Or it could be that InstallShield sucks. The Adobe Postscript Driver was also an InstallShield and it also was flakey. However the 16 bit programs I have run (Notepad and Acrobat Distiller 3) run fine.
So what I have installed and running are: FrameMaker 5.5, Acrobat Reader v 7, Larsen Commander which are all 32 bit, and Arcobat Distiller v 3, which is 16 bit. When the USB passthrough gets working I will be able to sync my Palm TX to the desktop running in XP (I am probably the last person on the planet still using a palm pilot.)
All these run very well, although the mouse pointer is a little funky: it seems to lag slightly behind the movement of the mouse.
I could not get Virtual PC 5.1 to run on my machine so Vbox is the only alternative - well the only one I have tried. And it is a very good alternative
Heh Doug!
Yes, Dial-up activation still works. One other thing I forgot to mention is that the Windows websites now do not seem to like the IE6 that comes with Windows, probably due to changes in the website components that have occurred over the years. It seems to need IE8 or higher to connect to the Windows Update site, so perhaps the same applies to the Windows XP activation site, if it still exists.
If your interested in updating XP components and getting security updates from Windows Update in future, I found this procedure to work, for Windows XP at least:
1) Install the base Windows XP OS into the VM.
2) Install Windows XP Service Pack 3 (if not already installed with the base system)
3) Install Internet Explorer 8 - the Windows Update site will not work with IE6, which comes with Windows XP originally.
4) Connect to Windows Update
5) Download the latest installation Pack that works for Windows XP (v4.5 - WindowsXP-KB942288-v3-x86). It will choose this automatically and after a reboot ActiveX will work.
6) It will also ask to install two update files (Geniune Advantage validation (KB898461) and Update for Windows KB898461))
7) After the necessary reboots for the various steps above you should have access to all Windows XP updates prior to discontinuing support in March 2014 (including .NET v4, if you need it).

A final key security update was issued (KB4012598) was issued for all Windows platforms (including Windows XP), to address security flaws related to the wannacry virus scare. This should be installed as a separate download and runtime)
Its has indeed been many years since I heard the name "Palm Pilot" used anywhere in polite company - but if it ain't broke and works perfectly, don't fix it, Sir

I have also noticed that the mouse pointer is a little bit flakey as well - I hadn't put it down to a delay problem, but I suspect you are right, on sober second thought - a VBOX VM pointer occasionally chooses a menu item above the one I was pointing to.
And regarding Virtual PC v5.1 - since the advent and widespread use of multicores, its been difficult to run on newer machines, and many times attempting to start the program could cause lock-ups (probably both memory and CPU compatibility problems). Putting in the activation key could also lock up the system, so installation was starting to become a little thaumaturgical (Where is Merlin when you need him? <sic>).
It could also sometimes be painfully slow in execution as well with newer machines. I bought 4 licenses, just as Microsoft bought the product, to ensure the product would still be available to me for business use, and it has performed faithful service for many years. But the VBOX alternative has proved fantastic so far.
Best!
M