[Osiris]

XP Mode is a simple implementation. The system includes a licensed copy of Windows XP with Service Pack 3 contained in a virtual hard disk (VHD) that executes within Windows Virtual PC. XP-mode allows users to run Windows XP from within Windows 7. Think of it as Windows within Windows. The system allows more than running old software within the virtualized environment. USB devices like printers and discs can quickly control the drives on the primary Windows 7 system. Most importantly, Windows XP-mode lets you use Windows 7, while still providing a platform for you to use legacy hardware that is not compatible with Windows 7.

How To Use XP Mode | Connected Internet

[HoLoCroN]

XP Mode is not enabled by default in Windows 7. You will need to go through a process to get it working.

http://www.microsoft.com/windows/vir...c/default.aspx

Blog with step-by-step instructions on getting XP Mode working.

http://clicko.wordpress.com/2009/10/...-in-windows-7/

[Mak213]

XP Mode is not enabled by default in all versions. Since it can only be used in Pro, Ultimate and Enterprise.