Microsoft have released a version of XP Mode which does not require Hardware Virtualization. The link below will take you to a Microsoft website where you can download the three parts necessary.

http://www.microsoft.com/windows/virtual-pc/download.aspx

I had not been able to try out XP mode because of the HV issue. My BIOS and processor are ‘old hat’ and wouldn’t allow for it, although some quad core ‘new hats’ don’t have HV either.

OK, so now I have the three parts saved on my hard drive, but I have not installed them. Why? Because I have been reading up on XP mode is why,,

1. Upside - It allows older applications to run which otherwise wouldn’t in Windows 7

2. Downside – if XP Mode is started and run, when closed down, it goes into ‘hibernate’ and continues to sap resources.

3. Downside – XP applications do NOT run with the same gusto as they would if running in a completely separate XP installation

4. Downside – It has limited hardware access -  e.g.  it can’t run games which require full access to graphics cards 3d abilities. It doesn’t miraculously enable hardware to work that didn’t before. 

My computer works well, and all of my old XP era hardware is working too. I have no desire to compromise it by trying to get old stuff to work which has long since passed its sell by date.

XP mode is not aimed at consumers. It is no substitute for an independent XP installation. It is a work around for business/commerce, regardless of whether HV is a requirement or not. Read about it before installing it..