How to migrate an existing physical computer system with Windows XP into VirtualBox VM image to be run on Windows 7 host?

Stupidly agreed to install latest Skype update (to version 7.6) and it has totally killed my Windows XP Service Pack 3 computer. The computer is experiencing the following issues: Skype 7.6 cannot render its windows properly - the Skype window would not repaint itself, only re-draws itself when you move your mouse over the window area. Dragging the Skype window would render it white or with artifacts, and it would only try to refresh or re-ren

I have a remote Windows 7 computer in the same subnet as my local Windows XP computer. They are in the same network segment, so no routing is required to reach Windows 7 host. Also, Win 7 host is successfully pingable by both IP address and host name - so the destination host is up and running and responds to pings. Here is what I am trying to do from Windows XP host: 1) run MSTSC.EXE, which is a command to launch Remote Desktop client shippe