Boris reported in the Origami Project forums that his AVS Now stopped working after upgrading to 1GB. I hadn't even tried AVS Now before or after, so I tried to run it and sure enough if hung while it was loading.

I figured out how to get it to work. Though use at your own risk. I'm not assuming any liability here if something goes wrong.

The way AVS now seems to work is that it actually runs XP with a minimal set of things installed and once it has booted it creates a hibernate file. It comes with a hibernate file that is based on the standard 512MB of memory and thus doesn't work after the upgrade. Here's what I did to get it working.

1. Plug in an external keyboard.
2. Shutdown and reboot into AVS now.
3. As soon as the boot logo goes away (or is about to go away), hit F8 (repeatedly if need be).
4. You'll get an option to "Delete restoration data and go to the boot menu". Choose this.
5. XP will boot, but for me nothing showed up (and this is the point I was searching for the restore CD).
6. Wait until disk activity stops and slide the power switch. If it shuts down, great. If not, just hold it until the machine shuts down.
7. Reboot into AVS now again.
8. The system will boot up and immediately go into hibernation.
9. Reboot into AVS. This time it should work.

You may need to repeat steps 6 and 7 twice. I booted into normal XP accidentally after the first shutdown.

Let me know if this works for you and if things went according to the instructions above.