I have been using Nuendo 3.2.1 with XP ME, and it has not been a problem. I do NOT use the ME features, and I really only bought it because they had some deals running and, at the time, I was not aware of the compatibility issues. I think that if you avoid the ME features, and turn off as much of it as possible, Nuendo and Cubase work fine (well, at least v. 3). I too have been contemplating the move v. 4 (Nuendo, but the compatibility issues appear to be similar). Would love to hear if others are successfully using v. 4 with ME.