It turns out the problem was that I had Virtual PC 2007 AND Virtual PC 2007 SP1 installed side-by-side. I uninstalled my original Virtual PC 2007 (not SP1) and then applied the Windows Update and the problem was solved.

I’ve read of this same issue affecting Vista as well. Hope this helps anyone who encounters this problem.

1. Folder icons have been turned sideways

I understand this was done to give a better visual indicator. But who stores real manila folders on their side? Defeats the metaphor if you ask me.

Folder icons are now sideways

2. Start menu scrolling is a pain

I don’t like having a fixed size start menu.  Why should I have to scroll to see menu items?  I would like to be able to re-size the menu, but this isn’t really possibly. You can make the menu bigger by bumping up the number of recent items, but you’ll still have to scroll. To adjust the Start menu size, right click on Start menu, choose Properties. Select the top Customize… button. In the Start menu size group, select the Number of recent programs to display option.

Start menu scrolling is a pain

3. Start menu icon only appears on mouse over

Not having icons on the Start menu for Document, Computer, Network, etc is just annoying. Icons are there for a visual depiction. Having icons apart from the actual item is distracting.  They should either have an icon or not–don’t stick it in as an afterthought.

Start menu icon only appears on mouse over

4. Confusing verbs in the Network and Sharing Center

The Tasks in the Network and Sharing Center are about as confusing as it gets.  If I want to set my IP address for my wireless adapter, which would I choose: Manage wireless networks, Set up a connection, or Manage network connection?  Like a lot of Microsoft products, there are too many ways to do the same thing.  So many similarly worded choices just add to the confusion.

Confusing verbs in the Network and Sharing Center

5.  In Explorer, column resizer is too small

In Explorer windows, Vista/Server 2008 added the filter drop down.  I love this feature but they managed to make resizing columns much more difficult.  The resizer now has just a few pixels where it’s active.  To top it off, when you click on the arrow for the filter, it pops down.  Click it again, and it stays down.  You can’t get it to go away.  Drag the filter arrow and it takes the whole column, so you can re-order them.  Why not just make the filter arrow part of the column resizer?  It makes more sense than it does to re-order the columns and I bet it happens a lot more often.

In Explorer, column resizer is too small

6. Not having the “up one folder” button in Explorer.

There is a pretty good bread-crumb navigation in Explorer now.  There is a back button.  But, there is no “up one folder” button, like there used to be.  I know, you can click on the actual item, but having to hunt visually is not nearly as effective as clicking a single button that is always there. At least the keyboard shortcut (backspace) is intact.

Missing the "up one folder" button

The old "UP" button - where did you go?

I searched for some solutions and came up with two that were pretty slick. I really would like a standalone lightweight XPS viewer, but they don’t seem to exist.

Solution 1: Use the IETab extension

Instructions from http://channel9.msdn.com/ShowPost.aspx?PostID=259840
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Install the IETab extension from http://ietab.mozdev.org/

Add a filter for xps extensions or modify the mht filter to read:

/^file:\/\/\/.*\.(mht|mhtml|xps)$/

Presto – XPS docs open in an IE tab within Firefox.

Solution 2: Associate the .XPS extension with Internet Explorer

Hold down shift, right-click on an XPS file and choose “Open With…”. The default should be “XPS Viewer”. Select Internet Explorer and then check the box “Always use the selected program to open this kind of file”.

For some reason this doesn’t seem as elegant as solution 1, but it gets the job done without having to install any additional plug-ins.