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Windows XP Mode is the combination of two features:

– The first part is a pre-packaged virtual Windows XP environment.
– The second is Windows Virtual PC, which is used to run the virtual Windows XP environment.

Customers can install their applications into Windows XP Mode using typical installation processes such as downloading from the Web or using the product CD. Once installed, the applications are automatically available on the Windows 7 Start Menu and can be launched just like any Windows 7 program. Optionally, these Windows XP applications can be pinned to the Windows 7 Task Bar and launched using just a single click from the Windows 7 desktop.

What types of applications are suited for Windows XP Mode and Windows Virtual PC stand-alone?

Windows XP Mode is best suited for older business and productivity applications such as accounting, inventory and similar applications.

Windows XP Mode is not aimed at consumers because many consumer applications require extensive use of hardware interfaces such as 3-D graphics, audio, and TV tuners that do not work well under virtualization today.

The sweet spot for applications that run in Windows Virtual PC is business and productivity applications that tend to conform to the basic Windows API (Application Programming Interface.) Small businesses operate under constrained resources and are highly sensitive to the time and expense required to upgrade their PC.

Windows XP Mode provides small businesses with the ability to run many Windows XP applications, saving time and expense, but Windows XP Mode does not have 100 percent compatibility with all Windows XP applications.