Yea, I'm running XP. My netbook does run Nestopia fine, just not while CursorXP is enabled, I've stopped using it anyway.
I see you're running Win7, did you know that Microsoft has a free download that gives you WinXP mode for Win7? So you can run older software.
Here's the link: http://www.microsoft.com/windows/virtual-pc/default.aspx
You might give that a try.
And yes, thank you c0d3h4x0r for the update, well done!