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As an aside, I find it unbelievable that it is easier to install XP on Virtual PC under OS X than it is on a run of the mill x86 box.

An x86 box with an on-board SATA controller that can't function in legacy mode isn't exactly run of the mill. I've only come across that once (a Shuttle board) and I've built plenty of machines with SATA drives. I find it unbelievable that someone who can build their own computer doesn't have a legacy floppy drive around.

PS- I can send you one if you'd like, but I doubt it's worth the duty and trip across the ocean.