Disabling Compress Old Files
1) HKEY_LOCAL_MACHINE \ SOFTWARE \ Microsoft \ Windows \ CurrentVersion \ Explorer \ VolumeCaches
2) Find the folder Compress Old Files, right click on the folder press delete
3) Close REGEDIT..
.Disk Cleanup should no longer hang with compress old files
BTW:, if your windows is from a pre-built company that they installed windows xp, please dont do this.. you can lose your information with those windows that the compay installed