Hi,
Virtual PKCS#11 works on XP. We didn't find any problem on XP.
The error -1879048193 (0x8FFFFFFF) means CKR_INTERNAL_PKCS11_ERROR
Virtual PKCS#11 uses a file to store the token objects. Such a file is $COMMON_APPDATA/Virtual Smart Card Reader.bin (Usually C:\Documents and Settings\All Users\Application Data\Virtual Smart Card Reader.bin)
Maybe something was wrong while writing on that file and now the Virtual token is unable to parse it. Open it to see if there is something wrong or delete it in order to reset the virtual token.