It includes the virtual machine software as part of the package, and yes I use V130. The small laptop I setup as a dedicated SDD: Acer TravelMate B1 Laptop Intel Celeron 1.10GHz 4GB Ram 64GB SSD running Windows 10 Pro.

 

I also use V130. The version depends on what you get with the cable. SDD can run in a VM, but some parts of the software (required for a S-Type) don't work as intended, due to USB-timing differences. The easies way is to buy a vintage XP-machine. Even if the Laptops are bloody slow, it will work.
For later Versions, some chinese dealers supply strange procedures to get them working. Sometimes you have to reset the date of the laptop, so SDD runs always on the same day.

 

Not a flame war, but trying to clear up your confusion, which is actually quite common. The CATS system is indeed controlled by the air suspension module, but has nothing to do with the actual air system, only the soft-or-firm damping setting. Air manages ride height, CATS manages damping. Two different functions, with two different purposes.

Think of it like this. In my Miata I have a set of adjustable coilover shocks with which I can manually adjust the ride height by adjusting the location of the spring perch up or down, and I can adjust the damping by turning the knob at the top of the shock. Turning the knob does not move the spring perch, and moving the spring perch does not adjust the damping knob. Two different functions. Same in the jag: damping (CATS) has nothing to do with ride height (air system.) The Air Suspension Controller, since it already sees all the sensors about the car's height and behavior, was simply a convenient place to have the binary logic that changes the damping setting that is the entirety of the function of the CATS system. Soft or firm. That's it.

 

If suspension is the only issue, go to coilovers. Did it on my 04 and never had another issue and the ride was fine. Only you will notice the difference - maybe.

 

The issue with moisture in the system is, there is no active way to remove moisture once it enters. The desiccant chamber on the compressor is supposed to catch it while pumping, and be blown out by clean/dry air when venting to lower back down. This works fine until there is a leak, at which point the compressor pulls in far more than the system vents, and moisture builds up. Once there is a leak, it needs to be repaired asap and the dryer checked/changed to prevent moisture in the valves which do get corroded from it.

I love a proper functioning air system over coils, but coming from MB and now JLR, there's times where the conversion makes much more sense. In my Benz days, particularly with the hydraulic suspension, repairs could be $10k easily, a coil over swap might end up cheaper than the repairs and will be super low maintenance going forward, which is super nice on an older car just being used as a commuter. On my CL600 I kept the ABC working despite the cost, because there's things you can do with active hydraulic suspension that just make the car drive like nothing else. Even as a tech though, the cost was incredible to keep it going.