Windows 7 Professional, Enterprise and Ultimate licenses enable users to install and use Windows XP Mode inside windows 7. It’s a free download from Microsoft download centre that provides an updated version of standalone Virtual PC and a executable virtual hard disk (VHD) inbuilt with Windows XP SP3.
Systems Requirement:
Hardware-Assisted Virtualization (HAV) enabled Intel, AMD or VIA Processor
Enabled HAV in computer bios
2GB for windows 7 32 bit or 3 GB for Windows 7 64 bit
20MB for Microsoft VPC and additional 15GB for XP VHD
Microsoft Virtual PC and Windows XP Mode
Windows 7
AIK and Microsoft Enterprise Desktop Virtualization (MED-V) for enterprise deployment
Windows XP Service Pack 3 Deployment Tools
Installation of Windows XP Mode (WindowsXPMode_en-us.exe) in Windows 7
Installation of standalone vPC update (Windows6.1-KB958559-x86.msu) in Windows 7
Preparing a custom VM for Deployment
Create Master vPC using XP SP3
Customize with applications, patches, Antivirus, etc
Create Sysprep.inf
Run Sysprep.exe
Sysprep will prepare the VHD for distribution, and shut down the VM
Deploying a custom VM for Deployment
Install Windows Virtual PC on each computer
Remove the Virtual Windows XP shortcut from the Start menu using GPO
Copy the Windows XP VHD to each computer in %LOCALAPPDATA%\Microsoft\Windows Virtual PC\Virtual Machines location
Create a VM configuration file using Run cscript CreateVirtualMachine.wsf -p:<vhd_path> -vn:<virtual machine name> at Command Prompt using Admin Account
Attach Custom VHD
Setup VHD permissions
Navigate to the folder where the VHD is present, right-click on the VHD name>click Properties>Security tab.
To assign ownership to the VHD, click Advanced>Owner tab>Edit> Other Users and groups>Everyone>OK>close
Now right click the VHD name>Properties>Edit under the Security tab. Ensure that the Administrators and Everyone have Full control on the VHD.
Click OK>General tab>clear the Read Only check box>OK
Blog by Raihan Al-Beruni 