ToEE OSX VIrtual PC 5 running XP SP2
Game crashes at start
I tried to install the directX update fix for this but the installation fails
Not sure what directx is does or if VPC5 supports it?
Is this a 2d or 3d game (I'm aware 3d games wont run on VPC5)

I do have Planescape torment and Arcanum running fine in VPC5
But what about ToEE

Any ideas?
Here is the error log:
[i]--------------------
[10/31/12 08:56:16] module: dxupdate(Mar 30 2011), file: dxupdate.cpp, line: 2234, function: RegisterDLL

Failed API: LoadLibraryEx()
Error: (0xc000001d)

Unable to load C:\WINDOWS\system32\xactengine3_0.dll.

--------------------
[10/31/12 08:56:16] module: dxupdate(Mar 30 2011), file: dxupdate.cpp, line: 5861, function: DirectXUpdateInstallPlugIn

RegisterDllFromSection() failed.

--------------------
[10/31/12 08:56:16] module: dsetup32(Mar 30 2011), file: dxupdate.cpp, line: 280, function: CSetup::InstallPlugIn

DirectXUpdateInstallPlugIn() failed.

--------------------
[10/31/12 08:56:16] module: dsetup32(Mar 30 2011), file: setup.cpp, line: 1727, function: CSetup::SetupForDirectX

InstallPlugIn() failed.[/i]

I know this thread is old, but someone might find this useful: avoid using Virtual PC, it sucks. Instead use Wine, preferably Wineskin. I use the CXG8.1.0 WIne engine as it runs very stable and doesn't suffer from flickering particle effects. Later Wine versions have problems with particle effects such as fire or smoke flickering, although maybe that's fixed by now. I also ran Winetricks dotnet20 and fontfix, not sure if newer engines would still need those.

Installing the Co8 modpack might be tricky with such an old engine. If I recall correctly i installed the game normally in Wine and patched it, then I installed, patched and modded the game in Windows and copied the modded game files from Windows to Wine.

I'd use boot camp, but I'm on a PPC Mac (not Intel).
Hence the Virtual PC
So far Arcanum and Planescape work fine, but I think TOEE is a 3d game not 2d with software rendering, so it won't run

Yeah, it's a 3D game.
Specifically, the characters and effects and generally all moving stuff is all 3D, with 2D backgrounds.

Oh, didn't know you're using a PowerPC. Personally I have an intel Mac and i still avoid using Bootcamp. Sure, BootCamp is the best solution, but often time I just don't feel like rebooting. Wine does not always works as well as Windows but in most cases it's good enough.