Question: when I run W8LOSS.EXE to reduce the size of my application, my system freezes. What's going on?

Answer: Your Component Library may be out of date or corrupted. Rebuild it.

We observed this when updating a legacy system using a series of batch files to compile and then reduce the size of final .EXE. After starting Delphi and choosing Options | Rebuild Library, we were alerted to several errors in recently updated library code. Once those were resolved and the Component Library was successfully rebuilt, W8LOSS ran flawlessly.

Since this is based on anecdotal evidence, it may not solve the problem you're facing. If it doesn't, then investigate similar avenues, e.g. things that would prevent W8LOSS from doing its job (unable to create a temporary copy of your program, limited file space, file-creation issues, etc.).

If you find or know of other causes, please let us know so we can update this document accordingly.