You can emulate Windows XP environment in newer Windows 7 operating system for easy compatibility. It also help ease out migration process to Windows 7 by providing additional compatibility for their older productivity applications for different small and medium-sized businesses.
“… Windows XP Mode provides what we like to call that “last mile” compatibility technology for those cases when a Windows XP productivity application isn’t compatible with Windows 7. Users can run and launch Windows XP productivity applications in Windows XP Mode directly from a Windows 7 desktop.”
New features of XP mode for Windows 7 include:
1. 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.
2. 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.
3. You now have the flexibility of customizing where Windows XP Mode differencing disk files are stored.
4. You can now disable drive sharing between Windows XP Mode and Windows 7 if you do not need that feature.
5. The initial setup now includes a new user tutorial about how to use Windows XP Mode.
Click here to download Windows XP mode RC. To get started, select your Windows 7 OS type and languages. Then download Virtual PC, Windows XP mode applications and complete the install for XP mode in Windows 7 operating system. [source]