Windows 7 - "Cannot complete setup" of Windows XP Mode

I am running Win 7 OEM 64 bit PRO on new PC:
AMD FX-8120, Gigabyte GA-990FXA-UD3 MOBO, latest BIOS
The setup gets to 99% then fails with the above message. So far I have tried:
Ensuring Virtualisation is on in BIOS
There are no bootable disks in the drive
I am running as admin with my own account logon name
I have run SFC - no conflicts
Yes I have downloaded the correct XP mode file
I have re-installed Win 7 and tried to run before installing any drivers or apps  - same problem.
Now what? I tried vmware but the standalone converter gave me an error message saying it was not configured properly.  I suspect either a policy problem with Win 7 or a MOBO bios incompatibility. Anyone got any ideas?

@robonline
I believe I'm seeing this same issue as well, I've got a windows 7 system that was running with an Athlon II 250 on which Windows XP mode installed and worked perfectly.
However when I upgraded the CPU to an AMD FX-8150 (in an otherwise unchanged system) Windows XP mode no longer starts properly, it seems to hang before the Virtual PC starts to boot the OS (so possibly either during BIOS POST, or right
at the transition.
I've discovered that it doesn't ALWAYS fail, and if power of the Virtual PC and Start it again a few times in quick succession it seems to then get past what ever point causes the problem and then boots the XP Virtual PC and
it works normally until it's next turned off.
So if you need XP mode (as I do for some work applications) the (crazy) work around might be to install XP mode with a none bulldozer CPU (if the try, try, try again method doesn't get the installer to work) you can probably get it to
start once you change back to your bulldozer CPU by simply trying to start the installed OS a few times in short succession.
@Alex
Many thanks for looking into this!
Rob

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