I wrote:

I need to do some research into the interaction between SLIME and Windows GUI message loops. Michael Jung was able to get a test program working if he ran SBCL from a command prompt instead of SLIME -- and a command prompt window is the mode I run the various CLs in as well, so I had not yet seen this problem with SLIME.

I will post an update once I have investigated this further.

OK, I have SLIME installed and running inside XEmacs. I've got my environment set up to load Graphic-Forms. I'm then able to run test programs, e.g. 'C-c : (hello-world)' and the app runs.

If anyone else runs into problems with Graphic-Forms and SLIME, please post details because then I'll try reproducing it locally. But otherwise, I have to say those famous words "it works for me!" :-)