Additionally, the guest OS (XP in this case) runs on a virtual hard disk (VHD).  The VHD is actually a large, single file on your physical disk.  To the host system this is a single file, but to the guest OS, this looks like a physical disk.  From the host you can move this file around, back it up, delete it, etc… Keep in mind that if you delete this file, you are essentially deleting your guest operating system.

To get started, you need a virtualization engine such as Microsoft Virtual PC (also free).  Once VPC is installed, you need to download XP Mode (this is a large download since it is a full copy of XP SP3).  The setup is painless. The only info you will need to provide is an admin password for your XP instance. Obviously, you can customize all kinds of settings but the defaults are acceptable for running XP. If needed, you can go back later and adjust memory, disk size, etc.

Once the setup is complete you can do anything within the virtual instance of XP as you would do in any other OS. You can install applications, surf the web, change the wallpaper, etc…

In this image you can clearly see XP with IE6 running within Windows 7

So why would you want to run Windows within Windows? I can think of several scenarios in which you would need to run XP within Win7.

1. Keep in mind that Microsoft’s biggest competition for Windows 7 isn’t Linux or Mac OSX, it is XP itself.  Windows XP is everywhere in corporate America. Applications have been written to run on XP since 2001. Many of these apps will indeed run in Windows 7 but there are many that will not.  In a perfect world, the developers would go back and update the apps and provide free upgrades, but Microsoft realizes this isn’t going to happen. So, in order to hurdle the compatibility barrier, they decided to basically give corporations the ability to run the apps in XP within Windows 7.  Not exactly efficient, but a solution exists.
2. No matter how successful Windows 7 is, there will still be people running XP for years to come. Unfortunately, many of these people still run Internet Explorer 6. Web and app developers need a method to test their sites on this older technology. Instead of keeping an old PC around just to test their site on IE6, they can simply fire up XP Mode with IE6.
3. Since the guest OS is installed on its own virtual disk, you can use the virtual instance as a security sandbox for anything you wouldn’t want to do in your host system.  If something gets hosed, just delete the virtual disk and reinstall XP Mode.

Running XP in a virtualized environment is not new or groundbreaking. So what makes XP Mode different?  For one, you actually get a free licensed copy of XP (most virtualized copies of XP are boot-legged).  Secondly, unlike some virtualization engines, the experience is seamless. You can easily copy/paste between the host and guest systems and there is a single mouse which traverses all instances without synchronization. Next, and really cool, is the ability to add a shortcut to a virtualized application within XP to your Windows 7 start menu.  This is significant because it hides the XP OS and only exposes the application to the user.  This is referred to as publishing an application in XP Mode and is enabled by putting the application in the ”All Users” group in the virtualized XP start menu.

In this screenshot, you can see a link to Google Chrome which is installed in the XP virtual instance. Chrome is not installed on Windows 7 in this example.

..and here is Chrome running in XP Mode without XP being visible.  Keep in mind Chrome is really running in a virtualized instance of XP.

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1. Highly Recommended: The most dramatic single UI change you can make is implementing the Royale Noir theme.  I don’t know the full story on this theme, but it was developed at Microsoft as an alternative to the default blue/olive Luna theme. For some reason it was not included with the original XP release or any subsequent edition or service pack. It is obviously the basis for the default look in Vista. I am using it now on my work laptop. You can download Royale Noir here – I’ve included a read me.txt file on where to copy the files. Here is more info on Royale Noir at Wikipedia: http://en.wikipedia.org/wiki/Royale_Noir

2. Highly Recommended: Most people know about PowerToys. These are XP add-ins that have been around since 2001. These are free useful utilities developed at Microsoft that weren’t included in the base XP code.  http://www.microsoft.com/windowsxp/downloads/powertoys/xppowertoys.mspx

a. You will want the alt-tab replacement. Although this is not as cool as Vista’s “Flip 3D” it is a definite improvement over XP’s out of the box alt-tab look. This PowerToy gives you a screenshot of the Window (verses a boring icon) as you alt-tab through your open windows.

b. Also consider Virtual Desktop Manager. This may not be a Vista specific tool, but it is useful if you have a need for multiple desktops. This utility allows you to switch among different desktops without having to login as a different user. You may have one desktop for work, for home, etc. Or you may have a specific desktop config for working on photos, one for gaming, etc…

3. Highly Recommended: Turn on Clear Type. This is a font smoothing technique that has been built into XP forever. I’m not sure why Microsoft didn’t turn it on by default. It dramatically improves the way fonts look on your screen. (This same option is also available and disabled by default in Windows Mobile.)  Display Properties > Appearance > Effects. 

4. Replace the old yellow XP balloons with new glass notifications. This guy has created a free simple balloon replacement meant to look more Vista like. The source code is also available if that interestes you. http://mpj.tomaatnet.nl/vista/glasstoasts.html

5. Convert the XP start menu to a Vista-like start menu with this free utility. This is a nice utility for freeware but it is a little sluggish on my system. http://www.vistastartmenu.com/index.html 

6. One really cool Vista feature is the live previews you get when you hover over a minimized item in the taskbar. Visual Task Tips is a free XP implementation of this. http://visualtasktips.com/  Again, it’s good for freeware but has room for improvement. For example, previews are not available for all minimized windows.

7. IE7 and QuickTabs. Don’t forget the QuickTabs (Ctrl-Q) feature that is built into IE7. If you have IE7 then you already have QuikTabs and didn’t know it. This allows you to quickly see all your IE tabs in a simple thumbnail layout. You can rearrange the thumbnails by dragging them around.

8. If all the above still doesn’t do what you are needing, there is a highly rated utility call Vista Inspirat which should do all the above (except for the PowerToys) in one install.  I have not used it myself, but it does look cool.  http://www.crystalxp.net/news/en181-vista-inspirat-ultimate-2-brico-pack.html

Obviously this does not turn XP into Vista and you don’t get all the new Vista features like window transparency, enhanced security, media center, a new graphics model, etc. These tools will give you a fresh look to an aging Windows XP.

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