easy transfer - Failed on XP source machine (log attached)

My source machine is XP. logged in as an admin. Doesn't get very far.
falls over immediately with this log.

2009-10-07 22:09:49, Info [0x0a0116] UI Running version
from C:\DOCUME~1\profile~1\LOCALS~1\Temp\MigWizL0
2009-10-07 22:09:49, Info [0x0a0117] UI MigWiz started on
Wed Oct 07 22:09:49 2009

2009-10-07 22:09:57, Info [0x0a007b] UI RunMigWizard
called...
2009-10-07 22:09:57, Info UI Checking and Setting
Language...
2009-10-07 22:09:57, Info UI LangID is [0x409].
Language name is [en-US]
2009-10-07 22:09:57, Info [0x0a0195] UI UI language is set
to en-US.
2009-10-07 22:09:57, Info [0x0a007e] UI Creating Migration
UI...
2009-10-07 22:09:57, Info [0x0a0080] UI Initializing
Migration UI...
2009-10-07 22:09:57, Info UI %TEMP% is C:
\DOCUME~1\profile~1\LOCALS~1\Temp\
2009-10-07 22:09:57, Info [0x0a0082] UI Starting Migration
UI...
2009-10-07 22:10:02, Info UI AppWindow has layout
style 0
2009-10-07 22:10:02, Info UI NavWindow has layout
style 0
2009-10-07 22:10:02, Info UI Page with ID 100
returned 0 for CanPageBeActivated with choice 0
2009-10-07 22:10:02, Info UI Suppressing cable
autoplay...
2009-10-07 22:10:02, Warning UI
CAutoPlayDeviceHandler::Init failed to register in ROT (-2147467243)
2009-10-07 22:10:02, Info UI Cable autoplay
suppressed.
2009-10-07 22:10:02, Info Entering
MigCanMigrateToThisSystem method
2009-10-07 22:10:02, Info [0x08034c] MIG
MigCanMigrateToThisSystem: detected OS version: 5.1.2600 Service Pack
3
2009-10-07 22:10:02, Info Leaving
MigCanMigrateToThisSystem method
2009-10-07 22:10:02, Info UI Page with ID 101
returned 0 for CanPageBeActivated with choice 0
2009-10-07 22:10:02, Info UI CloseAllAppsBase:
detected window "MigWiz" started by module: Explorer.EXE. Action:
Skipping due to override list
2009-10-07 22:10:02, Info UI CloseAllAppsBase:
detected window "MigWiz" started by module: Explorer.EXE. Action:
Skipping due to override list
2009-10-07 22:10:02, Info UI CloseAllAppsBase:
detected window "setuperr.log - Notepad" started by module:
NOTEPAD.EXE. Action: Skipping due to override list
2009-10-07 22:10:02, Info UI CloseAllAppsBase:
detected window "Control Panel" started by module: Explorer.EXE.
Action: Skipping due to override list
2009-10-07 22:10:02, Info UI Page with ID 254
returned 0 for CanPageBeActivated with choice 0
2009-10-07 22:10:02, Info Entering
MigCanMigrateToThisSystem method
2009-10-07 22:10:02, Info [0x08034c] MIG
MigCanMigrateToThisSystem: detected OS version: 5.1.2600 Service Pack
3
2009-10-07 22:10:02, Info Leaving
MigCanMigrateToThisSystem method
2009-10-07 22:10:02, Info UI Page with ID 107
returned 0 for CanPageBeActivated with choice 2
2009-10-07 22:10:02, Info [0x0a00b3] UI Waiting for
g_MigUIState.hInitThread
2009-10-07 22:10:02, Info Entering MigStartUp
method
2009-10-07 22:10:03, Info [0x0803ac] MIG Initializing online
WinNT platform (Read/Write)
2009-10-07 22:10:03, Info MIG Platform is using
admin privileges
2009-10-07 22:10:03, Info [0x0803df] MIG Adding direct
mapping from HKLM to HKEY_LOCAL_MACHINE (R/W)
2009-10-07 22:10:03, Info [0x0803e1] MIG Successfully mapped
HKLM
2009-10-07 22:10:03, Info [0x0803df] MIG Adding direct
mapping from HKU to HKEY_USERS (R/W)
2009-10-07 22:10:03, Info [0x0803e1] MIG Successfully mapped
HKU
2009-10-07 22:10:04, Info [0x08087c] MIG SMI engine is not
available on this system
2009-10-07 22:10:04, Warning [0x08040c] MIG Failed to create SMI
engine
2009-10-07 22:10:04, Info [0x08040e] MIG State data store is
NOT available.
2009-10-07 22:10:04, Info [0x0803b4] MIG
COnlineWinNTPlatform: ComputerName=PROXY
2009-10-07 22:10:05, Error [0x0802fa] MIG MigStartUp caught
exception: class Mig:evErrorException: Win32ErrorException: Error
(1315), Invalid machine account for PROXY.
class UnBCL::String *__thiscall
Mig::COnlineWinNTPlatform::GetMachineSid(class UnBCL::String *)

2009-10-07 22:10:05, Info Leaving MigStartUp
method
2009-10-07 22:10:08, Info [0x0a00b4] UI Done waiting for
g_MigUIState.hInitThread
2009-10-07 22:10:08, Info Entering
MigGetAvailableTransports method
2009-10-07 22:10:08, Error [0x080300] MIG
MigGetAvailableTransports caught exception: class
UnBCL::InvalidOperationException: CMigApp is not initialized..
class Mig::CTransportPlatform *__stdcall
Mig::CMigApp::GetTransportPlatform(void)
[gle=0x00000005]
2009-10-07 22:10:08, Info Leaving
MigGetAvailableTransports method
2009-10-07 22:10:08, FatalError migStatus ==
MIGSTATUS_SUCCESS[gle=0x00000005]
2009-10-07 22:10:08, FatalError [0x090001] PANTHR Unhandled exception
(code 0xE0000100: <unknown>) occurred at 0x7C812AEB in C:\WINDOWS
\system32\kernel32.dll (+00012AEB). Minidump attached (26396 bytes).