I'm learning about XP Mode in Windows 7. When I create a new XP Mode VM, everything works well until I click the Windows Update icon. Prior to that point, I can open Notepad and type along normally. However, once the WU icon is clicked, keyboard performance slows to a crawl; i.e., there may be as much as a 3-seoncd pause between keystrokes and the appearance of the word on the screen.
Hardware is a Dell D520 laptop with a Core 2 processor running at 2 GHz and 2 GB RAM.