so then I shut down the guest and restarted. It started OK. When I performed the upgrade to 2.0.4 I had my XP guest suspended. I guess I should have taken the precautionary measure of shutting down all guests before upgrading, though I've not seen that suggested anywhere. Maybe it wouldn't have made a difference, it's just something that occurred to me as something that maybe would have helped.
Sorry to say this guys but my experience is that each of the past few releases of Fusion have been slower and flakier than the last. I hope you get this back on track. I'd rather not go back to Parallels.