What is Windows XP Mode?
Windows XP Mode for Windows 7 makes it easy to install and run many Windows XP productivity applications directly from your Windows 7-based PC. It utilizes virtualization technology, such as Windows Virtual PC, to provide a virtual Windows XP environment for Windows 7.

Although Windows 7′s “XP Mode” has been a welcome feature of the new operating system, there’s been a fair bit of confusion brought on by the virtualization layer’s hardware requirements.
To work, XP Mode has required a PC processor that supports hardware virtualization, and that feature had to be turned on in the computer’s BIOS (basic input/output system). Those requirements caused some problems, as PC owners didn’t always have an easy way to tell if their system fit the bill.
Well, those requirements are no more. As part of a wave of virtualization announcements on Thursday, Microsoft said people running Windows 7 will now be able to use XP Mode without having to know whether their PC processor supports hardware virtualization.
