You can run Windows XP and its compatible applications or software on Windows 7. The new Windows XP Mode for Windows 7 offers compatibility of apps running in Windows XP to run on new Windows 7. This updated Windows XP mode in Windows 7 will work with RC and RTM versions of the Windows 7 professional, Ultimate and Enterprise versions.

For running Windows XP mode Download: Windows XP Mode Release Candidate and Windows Virtual PC.

Most of the windows XP or Vista applications will be able to run on Windows 7 according to Microsoft. If there are any of those which fail to launch, you can use this Windows XP mode from windows desktop to run your applications. It is recommend to install anti-malware and anti-virus software in Windows XP Mode so that Windows XP Mode environment is well protected.

New Features in Windows XP Mode RC

• You can now attach USB devices to Windows XP Mode applications directly from the Windows 7 task-bar. This means your USB devices, such as printers and flash drives, are available to applications running in Windows XP Mode, without the need to go into full screen mode.
• You can now access Windows XP Mode applications with a “jump-list”. Right click on the Windows XP Mode applications from the Windows 7 task bar to select and open most recently used files.
• You now have the flexibility of customizing where Windows XP Mode differencing disk files are stored.
• You can now disable drive sharing between Windows XP Mode and Windows 7 if you do not need that feature.
• The initial setup now includes a new user tutorial about how to use Windows XP Mode.

Note: Windows XP Mode RC requires RC or RTM version of Windows 7 Professional, Ultimate or Enterprise. It also requires additional 1 GB of RAM, 15 GB of available disk space, and processor capable of hardware virtualization with AMD-V or Intel VT turned on in the BIOS.

[Windows Blog]

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