FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * MACHON JEAN NOEL   2. Issuer Name and Ticker or Trading Symbol XEROX CORP [XRX] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Vice President (Last) (First) (Middle) P. O. BOX 1600, 800 LONG RIDGE ROAD 3. Date of Earliest Transaction (Month/Day/Year) 01/02/2007 (Street) STAMFORD, CT 06904 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 01/02/2007   J(3) V 15,334 A $ 0 (2) 79,009 D   Common Stock 01/02/2007   F(3) V 6,287 D $ 0 (2) 72,722 D   Incentive Stock Rights 01/02/2007   J(3) V 15,334 D $ 0 (2) 0 D   Common Stock 01/26/2007   M   30,000 A $ 0 (2) 102,722 D   Common Stock 01/26/2007   S   30,000 D $ 17.01 72,722 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option

$ 5.14

10/14/2007

12/31/2011

Common Stock

50,000

50,000

D

Stock Option

$ 7.885

01/26/2007

M

30,000

01/01/2004(1)

12/31/2012

Common Stock

30,000

$ 0 (2)

119,600

D

Stock Option

$ 10.365

01/01/2003(1)

12/31/2011

Common Stock

93,500

93,500

D

Stock Option

$ 21.7812

01/01/2005

12/31/2009

Common Stock

20,000

20,000

D

Stock Option

$ 26.625

03/01/2003

12/31/2009

Common Stock

1,212

1,212

D

Stock Option

$ 47.5

03/01/2003

12/31/2009

Common Stock

2,424

2,424

D

Stock Option

$ 13.685

01/01/2005(1)

12/31/2011

Common Stock

61,000

61,000

D

Stock Option

$ 15.205

01/01/2005(1)

12/31/2011

Common Stock

16,000

16,000

D

Performance Shares

$ 0 (2)

08/08/1988(2)

08/08/1988(2)

Common Stock

19,633

19,633 (4)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
MACHON JEAN NOEL P. O. BOX 1600 800 LONG RIDGE ROAD STAMFORD, CT 06904			Vice President

Signatures

Karen Boyle, Attorney-In-Fact		01/30/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Options vest over three years, 33.3% per year beginning in year shown.
(2)	Not Applicable
(3)	Vesting of Incentive Stock Rights.
(4)	These performance shares were earned based on achievement of specific annual performance criteria that are not tied solely to the market price of Issuer securities. Performance shares, to the extent earned, are scheduled to vest three years from their respective grant date.

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