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The DxDiag report, as expected, shows no errors, everything is fine. As for the unallocated disk, it seems it was formatted as a dynamic disk at some point. After reinstalling Windows, such a disk will be lost; you can, of course, extract files from it using various methods, but not with standard Windows tools. It should be converted to a regular disk; this might be the cause of the problem with Heroes. You can check the disk type in the Control Panel > Administration > Computer Management > Disk Management. Here's an example of how to do it if you need the files. Alternatively, you can simply copy the necessary files somewhere and format it as a regular disk. As for the "clumsy hands" comment, I doubt it. You were essentially doing everything correctly and thinking in the right direction – drivers, etc., even getting to the virtual XP, the logic was correct. It's just that you encountered a very obscure bug.