Virtual PC - Create new virtual machine snap in button not appearing

I was asked to move this question here so here it goes...
I have installed virtual PC and have the XP mode image working on Win 7 64 bit on a Dell Optiplex 990 i5. However when I choose the Windows Virtual PC manager and the Windows explorer window opens, I don't see the create virtual machine option, just
'burn' where it should be. How do I get the snap in option to appear to create a virtual drive? The window appears with the title Virtual Machines.
I have tried enabling the windows 7 aero UI thinking the classic windows appearance was somehow blocking this but that had no effect.
I tried re-installing the virtual pc setup directly from the website but it give me the message that it's isn't suitable for use. I tried un-installed and re-installing but get the same where the explorer window is missing the snap in.
Again, the XP mode image works properly and starts and shuts down without any issues.

Below is the fix for the virtual machines folder for WinVPC when the folder
here “%username%virtual machines” is missing the
“Create Virtual Machine” option.
Making changes to the Registry is potentially dangerous, always have a backup before proceeding.
The fix is pretty simple, copy and paste the following lines into notepad and save
to a *.reg file, then double-click to run it (you shouldn’t need to reboot for
the fix to take effect, close and re-open the window:
Windows Registry Editor Version 5.00
[-HKEY_CURRENT_USER\Software\Microsoft\Windows\Shell\BagMRU]
[-HKEY_CURRENT_USER\Software\Microsoft\Windows\Shell\Bags]
[-HKEY_CLASSES_ROOT\Local Settings\Software\Microsoft\Windows\Shell\BagMRU]
[-HKEY_CLASSES_ROOT\Local Settings\Software\Microsoft\Windows\Shell\Bags]
[-HKEY_CURRENT_USER\Software\Classes\Local
Settings\Software\Microsoft\Windows\Shell\BagMRU]
[-HKEY_CURRENT_USER\Software\Classes\Local
Settings\Software\Microsoft\Windows\Shell\Bags]

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