I thought I’d check out the Windows XP mode on Windows 7 and Bing’d it, was pleasantly surprised that all the info you need to understand and setup is available out here (http://www.microsoft.com/windows/virtual-pc/support/default.aspx)
There are some really simple and clear support videos, which I’ve included below.
A word of advice, if you have an earlier version of Virtual PC installed, Un-install it first to avoid any installation issues. In addition, you need check if your PC can run Windows XP mode http://www.microsoft.com/windows/virtual-pc/support/configure-bios.aspx.
An Introduction to Windows XP Mode
How to Install Windows XP Mode
How to Install an Application on Windows XP Mode
Windows XP Mode IT Pro Series
An in-depth look at the features and capabilities of Windows XP Mode and guidance for IT Pros