Integration Features have been Disabled

I'm having a problem with XP Mode on my Win7 box. Things have been working
fine for a couple weeks since I first installed VPC/XM Mode. Now when I
start XP mode I get an "Integration Features have been Disabled" error. The
only apps I have installed on this are Napster and Microsoft Security
Essentials. I can still get to the desktop albeit at a much smaller screen
resolution so the virtual desktop is tiny.

This has happened before where things work fine after a clean install of
VPC/XP Mode but then at some point I get the integration issues. I have
tried disabling integration features, reboot and re-enable with no luck. I
checked the policy editor to make sure "System Cryptography" is disabled and
it is. I have also checked only the options I need under the integration
feature which amounts to the clipboard, printer and local disk.

Any thoughts on where to turn next? I don't want to have to keep
uninstalling/reinstalling for this to work for a short time and then
eventually come around to the same problem.

Appreciate any insight.

Thanks,
Tom