XP Mode seems like a realyl good idea. Running it seperate in a viritual inviroment you still have the possibility to run old software you might be dependent on, and yet you dont clutter up the OS to much trying to make it compatible with everything old ... just wait to see if it works as intended.

yeah, guess I'll have to use Virtual PC cos vmware Server is not supported by Win7.. snif..

As I understand it, this "XP mode" is also going to require a CPU with virtualization enabled, such as the Intel E8x00 Core CPUs. So that would mean those of us with E7x00 processors and below will be SOL.

Strangely Vista,(with a bit of coercion) will run some XP SP2 programs using compatibility mode.
I tried this with Photoshop Elements 3 (!). Vista lectured me about how "Windows technology has advanced past this program". So, I clicked away the annoying Vista warning box and it runs just fine, no need for virtualization.

I'm guessing that the Win 7 "XP mode" will have the XP desktop as well, not just program compatibility (.) or perhaps (?)

I don't think there is a XP desktop like in a normal virtual machine such as VMWare or Virtualbox. On the surface, XP mode will look like just another application in Windows 7 sans Aero.

I thought this would be something I needed but I'm finding after running windows 7 64bit for months I won't need it at all. Most all modern software is compatible if not written for the 64-bit OS. XP you were my friend for so many years but now may you RIP.

You install Windows Virtual PC, then install Windows XP Mode VM. Yes, your CPU needs to be virtual aware. XP Mode only runs on Win 7 Enterprise and Ultimate (I'm not sure about Business). XP Mode is designed for old applications that will not run in compatablity mode. So far, I have not run into any apps that require XP mode, all run in Win 7 ok. You will need a separate Anti-Virus for XP Mode (as this is an XP VM, though somewhat integrated into Win 7). Of course you can now run MSE for your anti-virus.

There is only one thing that I really hope I'll be able to accomplish with the XP virtual machine, and it is to run it in 32 bit so I can play my old 16 bit games that I miss so much. I've been using 64 bits for a while now, and it is that only thing that is really lacking to me, 16 bit support for those reminescent of old times. As for compatibilities with Windows 7, I don't think it will me much of an issue; I've been using it for months now at the office and we have some internal software that runs just as fine as in XP. In one case, our internal library software now runs better than with XP (I work on photoshop, and since CS2 we were no longer able to drag images from the library straight into PS, but now with 7 and CS4 I can drag again which is great for saving time)!

Hi my name is Grant Ford and I work for a company called ChangeBASE and we write application compatibility software. The xpmode question is an interesting one. How good is it, who is it for, what will it help?

We were just recently part of an app compat roundtable session at MSFT where we were discussing this and other issues. It really is just a stopgap. it is an unmanaged environment and is not going to be too great if you are gaming inside it (what virtual environment is eh?). if you want to see what the experts had to say about it (including ours ) check out the link below.

http://www.computertech4u.com/reminder-springboard-series-virtual-roundtable-windows-7-application-compatibility-part-2-virtualization-with-your-host-mark-russinovich/

I was just about to complain about Windows 7 being useless because I have old software that cost me thousands of dollars and will never be updated and will not run on the new OS. Many people are in the same situation, and many just don't have the money to update even if they want to. In this market any new OS had better be completely backwards compatible or forget it. Be interesting to see how well it works.

Here's some detail i can add about "VT" virtualization vs. "non-VT" support in Intel CPUs and what it means about XP mode support in Windows 7. And i think this issue is gonna piss lots of people off!
1) XP Mode under Windows 7 requires the CPU support VT
2) Some Intel CPUs support VT. Others not. And just being a "newer" or more "powerful" CPU doesn't mean it will support VT.
3) In fact, the Core 2 Duo E7400 CPU may or may not support VT. You must look up the E7400 spec code for your E7400 CPU to know. (And that's outrageous!)

I, in fact, had just ordered a new Dell with an E7400 and am cancelling / changing the order tomorrow.

Here;s some links that might help provide more detail and explanation
Intel Virtualization Technology List
How many Intel CPUs will fail the XP Mode test in Windows 7?

After viewing your links, the only "slam dunk" Intel CPUs for virtualization are the E8x00 series. This is serendipitous, because they're pretty much a slam dunk for whatever else you might want to do with your computer.

The E7500 & 7600 are problematic because some revisions will support VT others not. Ordering a computer CPU version specific, well that's high on impossible.

That the lower series of Pentium Dual Cores will not support VT, is far from surprising. With these, you're not paying for it, and so you shouldn't expect to get it.

As an aside, Microcenter is advertising the E8200 in their October sale catalog, on a walk in, store only basis for &99.95. So, there's VT, in a CPU that will easily clock up to it's more expensive brother the, E8400 @3.06Mhz, for 40 bucks less than Newegg wants for an E7600! (139.95) The moral of the story here is, that it's real nice to have a Microcenter within shopping distance from time to time.