I have just migrated from Windows XP to Windows 7. I believe that Windows 7 has MSXML 6.0 but not 4.0. I suggest that the VcXsrv web pages should state that MSXML 4.0 is required, and perhaps warn that this package is not present by default on Windows 7. Or perhaps VcXsrv could be changed to use MSXML 6.0?
Indeed it is true but it is only xlaunch that is dependent on msxml 4.0, vcxsrv itself does not depend on it.
I have removed the dependency on msxml from xlaunch. xlaunch will be using libxml2 instead. This change will be incorporated in the next release.