I’m installing Windows XP Mode on my Windows 7 laptop right now. It’s taking quite a while, but I guess what it’s doing under the covers is installing Windows XP under Virtual PC.
Oh, hey, it just started up Windows XP. Now it’s going through all the normal annoying things you get on a new XP machine, the warning about unused icons on your desktop, the warning about not having any anti-virus software, and all that.
Okay, so I played around with it a bit and it looks like your usual Windows XP virtual machine, only with a few differences. There doesn’t seem to be an obvious way to shut the machine down; you can only log off and hibernate it. And there’s a fixed user that is automatically logged in. I guess I don’t know much about Windows XP Mode yet. I’ll have to play with it some more.