On Mon, 13 Aug 2007 23:47:46 +0200, Frank Mittelbach wrote:

> i'm not sure there is one right now, it would probably require  
> reimplementing
> graphicx and xcolor using the xpl3 language first.

Oh, no nothing that drastic is needed. The problem is that xinitials.sig  
starts with \IgnoreWhiteSpace which isn't turned off again so it barfs as  
soon as it meets something relying on space having document catcode. I've  
fixed this in the source and uploaded the changes.