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The issue with XP Embedded is that its too "hardware specific". You cannot make a generic image file that works on all machines. Someone can correct me if I am wrong. Starting from the core drivers everything needs to be just right, if you screw up even a little bit, it will crash entirely. The reason is there are just way... too many hardware out there. Unless someone starts selling CarPC with specific hardware and make XP embedded for it, people will have to struggle making their own solution.
Saying all this, I am still keeping my eye on this thread to see what develops. I myself would love to give it another go at XPE.
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