Manifest Parse Error: An invalid character was found in text content

[deadbug]

I'm using what I believe to be a typical multiboot setup, but I'm having an issue with Windows XP Professional.

I have a syslinux-based menu system which will eventually pick a bin (say PRU3.bin). That will look in \PRU3 for a bunch of files and eventually start to install from \SETUP\XP\PRO\SP3.

If I install under VMware, it all works. Except that with VMware player I cannot seem to get the ethernet to work. So I tried VMware Server (also free, but 500+MB!) but I cannot manage that via its webserver!

So I downloaded MS Virtual PC 2007 SP1 and had a go with that.

Unfortunately that gets upset at T-39 (I think). It's the "Preparing Installation" stage and says there are 39 minutes to go.

A popup says:

An error has been encountered that prevents Setup form continuing.

One of the components that Windows needs to continue setup could not be installed.

Manifest Parse Error: An invalid character was found in text content.

Press OK to view the Setup log file.

When I look at the error log it includes this:

Error:

SXS.DLL: Syntax error in manifest or policy file "D:\SETUP\XP\PRO\SP3\I386\asms\1\default\default.man" on line 0.

Now that file looks OK to me:

<?xml version="1.0" encoding="UTF-8" standalone="yes"?>
<assembly xmlns="urn:schemas-microsoft-com:asm.v1" manifestVersion="1.0"> 
    <assemblyIdentity type="win32" name="Microsoft.Windows.SystemCompatible" version="5.1.2600.2000" processorArchitecture="x86" publicKeyToken="6595b64144ccf1df"/>     
    <description>System Compatible Default</description>  
    <dependency>
         <dependentAssembly>
            <assemblyIdentity type="win32" name="Microsoft.Windows.GdiPlus" version="1.0.0.0" language="*" processorArchitecture="x86" publicKeyToken="6595b64144ccf1df"/>
         </dependentAssembly>
    </dependency>
    <dependency optional="yes">
         <dependentAssembly>
            <assemblyIdentity type="win32" name="Microsoft.Windows.Networking.DxmRtp" version="5.2.2.3" language="*" processorArchitecture="x86" publicKeyToken="6595b64144ccf1df"/>
         </dependentAssembly>
    </dependency>
    <dependency optional="yes">
         <dependentAssembly>
            <assemblyIdentity type="win32" name="Microsoft.Windows.Networking.RtcDll" version="5.2.2.3" language="*" processorArchitecture="x86" publicKeyToken="6595b64144ccf1df"/>
         </dependentAssembly>
    </dependency>
</assembly>

I've checked out other topics that match that error and the answers mostly boil down to "you have a problem burning or reading CDs". I'm installing from an ISO image build by CDIMAGE.

On top of that, my image works under VMware and also worked (a few weeks ago) when tested on a real machine.

Any suggestions?

Does my default.man look out of whack? If so, any idea why that would upset MS VirtualPC but not VMware?

Incidentally, this is a bare XP SP3 install. I've not yet integrated RyanVM's post-sp3 update. I get the same error from XP SP1 and XP SP2.

[deadbug]

FWIW I've not solved the problem, but VirtualBox doesn't show it either, so I'm going to assume that VirtualPC is the root of the problem.