wine users - Oct 2007 - Wine in Xephyr

Hi there!

I am trying to run wine within Xephyr
(http://www.freedesktop.org/wiki/Software/Xephyr), a nested X server.
However, it does not seem to be working. Winecfg yields the following
result http://pastebin.ca/726829
Can anyone help? or at least tell me why it won't work.

Thanks,
Ben