WFBS 7.0 SP1 and 8.0 does not support Windows XP Embedded due to operating system issues.
XPe is a Windows XP version that allows the original equipment manufacturer to choose a subset of operating system components that can run on specific devices, such as ATMs and cash registers. In XPe, the system requirements and operating system footprints can be reduced, but doing so will be at the expense of the application hardware compatibility found in standard copies of Windows.
Trend Micro knows the importance of supporting Windows XPe. However, the incompatibilities can prevent deployment and normal operation since each vendor can configure one or more editions of XPe with a varying number of components.