i am running Both versions of Vista 6000 and SP1 (6001).
Its common for people to have USB issues when connecting their device which has led some to propose the "Dual Boot" to use active sync.
Other than an occasional sync issue there should be no issues flashing custom roms to an unlocked Titan.
HANDHELD - in the USB connectivity settings you need to uncheck "Enable Advanced Network functionality". This will change windows from seeing it as an "NDIS device" to a standard serial device (similiar to how bootloader mode is recognized).
Keep in mind its not easy but a VM is a far smoother idea than DualBooting. I had to map the com ports to my local USB in order to get it to work but after hours of tweaking it has worked in the past and i have connected via activesync in an xp virtualmachine.
FYI - as Imcokeman mentioned there was a Vista update for WMDC in November which needs to be applied. Its a functionality update and absolutely helps improve the USB connectivity issues.
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