Windows XP Mode refers to Microsoft’s pre-configured virtual machine working inside Windows Virtual PC, which contains one fully licensed copy of Windows XP Professional SP3.

Windows XP Mode is just what rumor had been boasting, the killer app that will provide Windows 7 with killer compatibility for software that only work within Windows XP.

Got some confusion here? Well, don’t.

Windows Virtual PC is the brand new feature introduced along with Windows 7 RC, and its biggest use would be for Windows XP Mode, which is a pre-tailored XP for use within Windows Virtual PC. Windows Virtual PC refers to the whole virtual OS while Windows XP Mode refers mainly to the specific program you want to run.

This is all for the introduction.

Microsoft released a specific update pack named Windows Virtual PC, by installing which you can have a framework for virtualization, from where you can install other OS to maintain dual OS running side by side.

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NOTE: Windows Virtual PC can only be installed on Windows 7 RC and beyond.

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Here is a snapshot of installing WVP on Windows 7 Beta, build 7000.

However, this doesn’t mean that you can only install it on build RC. In fact, all builds of RC branch will be good.

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Windows Virtual PC is not limited to only installing Windows XP. Details of supporting OS are not clear by now, but many sources indicated users could only use Microsoft products.

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After the completion of installation, restart the computer, click on Virtual Windows XP, system will start configuring Windows XP image automatically.

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Integration features will smooth the normal operations, and integrate the virtual machine into Windows 7 by directly publishing all applications in XP to start menu of 7.

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Start Virtual Windows XP.

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Old and new become integrated.

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For any program installed in Windows XP Mode, system would automatically generate shortcuts under Virtual Windows XP Applications.

If you had opened a Virtual Windows PC, you’d have to put it to rest as ordered by Microsoft.

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Vice versa.

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