I tried creating a new virtual machine and install XP Pro from scratch. I have tried 3 times with different XP disks and end up everytime in an Activation Loop. I log in and I get the dialog box stating I need to Activate this copy of Windows before I can use it. I hit OK, go through the steps, get a "You have successfully activated" message and then it logs me off and I get the original message saying I have to Activate again. I cannot get out of this loop. Please help.
Now my windows is shot to pieces. Did exactly as you asked, which delivers a clean windows install, with all apps in the program files folder, but no apps installed in the menu's. All installed apps now think I need to reinstall, so my regsitry is shot. Now what to do? You make matters worse instead of better. O AND i still need to reactivate. You better come up with some very good solution now. My mood is almost down to warmode.
Sorry, backup always should be done prior to any serious operation. But from your description it means that virtual hard disk was corrupted