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 * MULCAHY ANNE M   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) Chairman and CEO (Last) (First) (Middle) 800 LONG RIDGE ROAD, P. O. BOX 1600 3. Date of Earliest Transaction (Month/Day/Year) 03/07/2006 (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 Incentive Stock Rights               366,000 D   Xerox Stock Fund               13,300.425 (3) I Xerox Stock Fund Common Stock               4,503.34 I Employee Stock Ownership Plan Common Stock 03/07/2006   G(8) V 40,501 (8) D $ 0 (2) 73,770 I By Anne M. Mulcahy GRAT Common Stock 03/07/2006   G(8) V 3,770 (8) D $ 0 (2) 70,000 I By Anne M. Mulcahy GRAT Common Stock 03/07/2006   G(8) V 40,501 (12) A $ 0 (2) 593,448 D   Common Stock 03/27/2006   G(9) V 100,000 (9) D $ 0 (2) 493,448 D   Common Stock 03/27/2006   G(9) V 100,000 (9) A $ 0 (2) 170,000 I By Anne M. Mulcahy GRAT Common Stock 07/05/2006   G V 34,100 (10) D $ 0 (2) 135,900 I By Anne M. Mulcahy GRAT Common Stock 07/05/2006   G V 34,100 (10) A $ 0 (2) 527,548 D   Common Stock 08/18/2006   G V 1,630 (11) D $ 0 (2) 525,918 D   Common Stock 01/03/2007   M/K(5)(6)   257,577 A $ 0 (2) 783,495 D   Common Stock 01/03/2007   S/K(5)   72,090 D $ 16.9715 711,405 D   Common Stock 01/03/2007   F/K(5)   70,992 D $ 16.9715 640,413 D   Common Stock 01/03/2007   S   2,900 D $ 16.93 637,513 D   Common Stock 01/03/2007   S   14,100 D $ 16.94 623,413 D   Common Stock 01/03/2007   S   20,100 D $ 16.95 603,313 D   Common Stock 01/03/2007   S   20,600 D $ 16.96 582,713 D   Common Stock 01/03/2007   S   20,800 D $ 16.97 561,913 D   Common Stock 01/03/2007   S   11,300 D $ 16.98 550,613 D   Common Stock 01/03/2007   S   800 D $ 16.99 549,813 D   Common Stock 01/03/2007   S   2,700 D $ 17 547,113 D   Common Stock 01/03/2007   S   9,300 D $ 17.01 537,813 D   Common Stock 01/03/2007   S   6,900 D $ 17.02 530,913 D   Common Stock 01/03/2007   S   600 D $ 17.03 530,313 D   Common Stock 01/03/2007   S   1,800 D $ 17.06 528,513 D   Common Stock 01/03/2007   S   1,900 D $ 17.07 526,613 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

$ 4.75

01/03/2007

M/K(5)(6)

257,577

01/01/2002(1)

12/31/2010

Common Stock

257,577

$ 0 (2)

0

D

Stock Option

$ 7.885

01/01/2004(1)

12/31/2012

Common Stock

934,600

934,600

D

Stock Option

$ 9.25

01/01/2004

08/28/2011

Common Stock

1,000,000

1,000,000

D

Stock Option

$ 10.365

01/01/2003(1)

12/31/2011

Common Stock

934,600

934,600

D

Stock Option

$ 21.7812

01/01/2005

12/31/2009

Common Stock

60,000

60,000

D

Stock Option

$ 27

01/01/2001

12/31/2009

Common Stock

250,000

250,000

D

Stock Option

$ 46.875

01/01/1999(1)

12/31/2008

Common Stock

49,044

49,044

D

Stock Option

$ 47.5

03/01/2003

12/31/2009

Common Stock

13,946

13,946

D

Stock Option

$ 59.4375

12/31/2006

H(7)

V

1,382

01/01/2000

12/31/2006

Common Stock

1,382

$ 0 (2)

0

D

Deferred Comp.

$ 0 (2)

08/08/1988(2)

08/08/1988(2)

Common Stock

$ 500,000

$ 500,000 (3)

D

Stock Option

$ 13.685

01/01/2005(1)

12/31/2011

Common Stock

609,000

609,000

D

Performance Shares

$ 0 (2)

08/08/1988(2)

08/08/1988(2)

Common Stock

98,033

98,033 (4)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
MULCAHY ANNE M 800 LONG RIDGE ROAD P. O. BOX 1600 STAMFORD, CT 06904			Chairman and CEO

Signatures

Karen Boyle , Attorney-In-Fact		01/05/2007
**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)	Hypothetical investment of deferred compensation in Xerox Stock Fund under the Xerox Saving Plan.
(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.
(5)	Stock options were exercised by stock swap using the attestation method.
(6)	This sale of shares was effected pursuant to a Rule 10B5-1 trading plan adopted by the reporting person on February 8,2005 and disclosed under item 8.01 of the Form 8-K filed with the Securities and Exchange Commission on November 5, 2004.
(7)	Expiration of unexercised stock options.
(8)	Distribution balance of the 2004 GRAT previously held directly by reporting person.
(9)	2006 GRAT shares previously held directly by reporting person
(10)	Partial distribution of the 2005 GRAT previously held directly by reporting person
(11)	Shares gifted to Eileen Moore ACF Olivia Kathryn Moore
(12)	Shares gifted to M Mulcahy (1885 shares) and K Mulcahy (1885 shares)

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