After installing Compactor in my Win XP Pro SP2 image on my MacIntel, I got the following error when booting the image:
Your system is low on virtual memory. To ensure that Windows runs properly, increase the size of your virtual memory paging file. For more information, see Help.
If I then proceed to login, I get an Explorer error (which I unfortunately didn't copy down), and my desktop with no icons, Start menu, Task Bar, etc...
Oh well...I guess I need to create a new Win XP image. Hey...it's a beta test, right? ;-)