I haven't had any issues with ilists and HORM that I know of. What issues are you having with it? The only issue I have with HORM is the fact that Winamp doesn't really have a randomize feature so your playlist always restarts from the same point. I was going to try to find a way around that using a small USB thumb drive but haven't had the chance.
On a side note...I've been messing with an unattended carpc install and using Server2k3 SP2, I have it to the point where it will setup EWF for you, setup HORM, updated directx, flash9, 7zip, winamp 535, activewinamp, ffdshow codec, road runner, carwings and dfx3 skins, and bootvis (for optimising bootup time). Post install boot time with no further tweaks is 21 seconds in vmware. Will try and modify TinyXP this afternoon and hopefully get better results as the Server 2003 SP2 I used was a full copy (from work
) and therefore the only tweaks were some simple registry tweaks.