this is correct. This installs several drivers (mouse, video, shared folders). you can try old shooters like Quake 3 if you want to play them inside a VM.
you need a clean non vLited Vista to install the Sp2. Integrate Sp2 first (http://www.msfn.org/board/index.php?s=&showtopic=130745&view=findpost&p=840453) and next remove your components.
I'm using vLite for a long time and add/remove works fine. You should know what to remove and what to keep. If you select nearly everything to remove it's clear that some parts do not work correctly.
VPC emulates a graphics card. Because of this you can't have Direct3D. VirtualBox (my favorit tool) offers OpenGL support inside the VM. Try this out if your applications support OperGL.
you are missing the following file: amd64_microsoft.windows.c..-controls.resources_6595b64144ccf1df_5.82.6001.18000_ar-sa_c225f582a3cec90c.manifest run the Update KB947821
no, that only happens because 99% of the users are administrator under XP. When you run the software with limited accounts a lot of programs wouldn't run under XP correctly.