I finally got it to work!
Using VMLite XP Mode - you have the option to increase your vid memory to 128mb and to use 3d/2d. The games runs, but after a couple of minutes Vindictus says there's an unauthorized program detected and I'm booted a couple minutes later.
Should be enough time to at least grab tokens off of a mule. Need to figure out how to stop Vindictus from realizing it's being run on a vm now lol.
**Edit**
When you try to enter an instance, the game closes completely - not useful.
So this is the verdict so far:
Virtual PC - doesn't work
VMLite - Runs the client but detects an Unauthorized Program and closes (detects you are running a vm)
VMWare - doesn't work, but I believe the guildmember is using VMWare Workstation - I will update this after I test and confirm.