I am running 64-bit Vista with 8 GB ram and 4 cores. It supports hardware-assited virtualization.
Using Virtual PC 2007, my newly built 32-bit Windows XP Pro VM is running incredibly poorly. Even the simplest actions like showing the start menu will cause the CPU usage to hit 100%.
The same VM setup hosted on a dual-core 32-bit XP Pro box without hardware-assited virtualization work just fine.
Any suggestions? Right now it is almost unusable on my Vista box and I don't even know where to start looking for the cause.