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One thing I found fast from the time this guide was first posted here and once the final XP Mode was available was that copying no longer worked as it had been seen with the XP Mode RC version which was the only version available at the time.
The final version runs like an installer with a preconfigured setup mode for each fresh install there unlike the RC. The guide here worked then for the RC version however but now needs to be updated.
When the RC version was used on a second 7 RC installation I would simply create a new shortcut once the files/folders were copied over once a fresh install of the Virtual PC was seen first to have it work then.
First you now install the VPC, restart the system, and then install the XP Mode later to watch the setup take place.