Ok, I reloaded Win 7 totally so the system was empty of any mistakes I might have made earlier. Clean install of both XP Mode and Virtual. Bios is active. I also went to the site above and downloaded a program for 'right click take ownership' and did that.
Now what was different this time was when I clicked start, all programs, virtural and then XP mode nothing happened, so i went to start, all programs, Virtual and it openned a window with the virtual drives on it. None were there so I created one. Now it is there and "hibernating". I right mouse clicked to make sure i owned it and even then it will not fire up. I went back to start, all prgrams, vitual PC and XP mode and still, nothing happens. The mouse spins for a few moments and the hard drive runs also and then nothing. Really got me beat this time.