It is possible to get into a state where Windows XP mode stores the wrong logon information.

There are a couple of ways to hit this problem – but the most common cause is because you have changed your password inside Windows XP.  The result is that when you start Windows XP mode you see the following error message:

After getting this error message you then have to type in your password to logon.  Unfortunately this will not fix itself automatically.  Fortunately it is not too difficult to fix manually.

The core problem is that Windows Virtual PC has a saved copy of your old logon information – and this information needs to be updated.

To do this you will need to:

1. Stop the virtual machine
2. Open the settings for the virtual machine
3. Go to the Logon Credentials page
   
   You should see a user name on this page:
   
   
4. Click on Delete saved credentials
   
   This should cause the user name field to be cleared:
   
   
5. Start the virtual machine
   
   You should be prompted for your logon information:
   
   
   Make sure that you check the option to Remember my credentials:
   

Now your Windows XP mode should logon automatically for you again.

Cheers,
Ben