It looks like you're facing an issue with Virtual XP after installing build 7232. The error message about the "VMC handler.dll" missing indicates that the Virtual Machine Component handler might be causing an error. Here are some potential workarounds you can try to resolve this issue: 
Solution 1: Reinstall Windows Virtual PC
 
- Uninstall Windows Virtual PC through the Control Panel.
- Download and install the Windows Virtual PC software from the official Microsoft website.
- Reinstall the Virtual PC and see if the issue persists. Solution 2: Update or Repair Windows Virtual PC
- Go to the Control Panel and look for the "Programs and Features" section.
- Find Windows Virtual PC in the list of installed programs...