I would like to have a Linux live system that contains a Windows xp virtual machine. This would be run from a bootable USB flash drive. My attempts so far have been unsuccessful. I created a Lubuntu 12.04 virtual machine with VMware. I updated and configured it to my needs, and installed Virtualbox. I then created a Windows xp vm with Virtualbox in the Lubuntu vm. I tested everything and everything worked, including USB devices.

I installed Remastersys in the Lubuntu vm, copied the xp vm folder to the /etc/skel folder then created the custom iso with remastersys. I burned the iso and tested it on a laptop. It worked flawlessly. All programs and wireless networking worked. My problem was the xp vm. Virtualbox started fine but would not run the vm. I have the following error:

Result Code: 

    NS_ERROR_FAILURE (0x80004005)

Component:

    VirtualBox

Interface:

    IVirtualBox {c28be65f-1a8f-43b4-81f1-eb60cb516e66}.

I ran remastersys again changing the permissions on the skel folder to R W for everyone. I also logged into Lubuntu as root and ran remastersys again. Each iso I created worked fine but would not start the xp vm inside. The last attempt virtualbox gave me an access error stating it can not access the virtual disk.

Is what I want to do possible? In theory I don't see why it would not work. Is it a permissions issue? Should I create the iso then add the xp vm after by editing the iso by hand? Using a vm and not real hardware as a build machine a problem? Any ideas? keep any responses in laymens terms. I am still a Linux novice.