i'm sorry, i've been running around like a headless chicken this morning (our NAS died overnight) and forgot how to change NIC settings on the xpvm.
Go to post #51. I posted links on how to change the setting.

IPv4 Address. . . . . . . . . . . : 10.1.10.192
Interesting that you are on a 10.x network. When you test the XPVM, it should also have a 10.1.10.x number.

You can leave .NET. Try deleting the ASP.NET machine account and see if you can login without a password.
http://marksxp.mvps.org/WindowsXP/aspdot.php