Just had another thought, you said on xfire you can do a clean but not munge, try doing a clean again then go into:
data_xxx/_BUILD/Worlds/xxx/Munged/PC and see if the folder is actually empty. If it isn't then VM is just going though the motions but not doing it. In that case it might be a permission thing, do you have adminstator rights on the computer.


Oh and I did do the take a map from my desktop to my laptop and it munges fine.

I have seen this map on youtube. The video was made by Darth_Z13 is this the same map?