Just for a lark, I fired up an XP SP2 virtual machine on my desktop and installed Live Mesh onto it. Seems to have worked a treat!
Since I have a dual monitor setup, I had the VPC session open on one screen and my remote desktop session on the other. You get an interesting effect when the left screen updates and then the changes slowly appear on the right screen.
Tried the Ctrl-Alt-Del to kick myself off, too, and that worked.
The possibilities for remote control are starting to overwhelm me...