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I am using a dos application in a windows xp mode virtual machine. When I start the app it runs fine, but if I stop using the mouse, the program will stop running until I move the mouse. It doesn't appear to be a powe saving issue, as the time before it stops running is really only a few seconds

Any ideas?

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I thought I had this issue fixed with the Virutal PC update, however, upon further use of the VM, I've found that it does not function properly at all. DOS applications run extremely slow, but fun faster when the mouse is wiggled and moved during the operation. – Chris Oct 29 '10 at 3:44
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Simple answer: Avoid mapping share in XP mode to shares in the win7 host (\tsclient). Rather, map directly to the share (\servername\sharename).

Details:

I the end, the issue was caused by the XP Mode local file access bug (where it is extremely slow to read/write anything in the host file system). A network drive was mapped to the host Win7 computer (as drive Z:) and in the Windows XP mode, drive Z: was mapped to \tsclient\z which made it terribly slow.

I resolved the issue by changing the network card in the XP Mode Settings (via Virtual PC) from the virtual NAT NIC to the physical NIC so that I could map z: to \server\share (a path not available under the NAT NIC setting).

DOS program is working very well now.

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