Actually your running the maemo sdk still in a linux vm. What I've done is moved the two windows for controlling everything from inside the scratchbox/vm to outside of the vm so that they are both like normal Windows applications. I then minimize the VM so it is just a task bar item.

I can now copy and paste between them and other windows apps. This has been very very useful from the Browser -> ssh window.

I also no longer have to deal with the VM eating my mouse and having to hit the "Alt" key to let it go. I can click in the SSH session, then in the Xephyr window and back to my browser w/o having to remember to unlock the mouse.

Speed wise (Xepyhr)-- it as least as fast; (I actually think it is faster). But the actual work flow is much, much faster. I can alt-tab between the dozen or so windows now and not get locked inside the vm.

Nathan.