Here are some of the new features in Windows Virtual PC for Windows 7:

Easy setup of Windows XP Mode - Once both the Windows Virtual PC and the virtual Windows XP environment are installed, Windows Virtual PC provides a simple wizard to set up Windows XP Mode with just a few clicks.

USB support - Users can access USB devices attached to the host directly from virtual Windows XP. These devices include printers and scanners, flash memory/sticks and external hard disks, digital cameras, and more.

Seamless applications - Publish and launch applications installed on virtual Windows XP directly from the Windows 7 desktop, as if they were installed on the Windows 7 host itself.

Folder integration between host and guest - Access your Windows 7 Known Folders: My Documents, Pictures, Desktop, Music, and Video, from inside the virtual Windows environment, such as Windows XP Mode

Clipboard sharing - Cut and paste between your Windows 7 host and any virtual machine.

Printer redirection - Print directly to your attached printer from your seamless application or virtual machine.

Smart card redirection - Ability to support smart cards connected to the host, inside the guest operating system. Smart card redirection works in a similar way to printer redirection. It is not available with integration features enabled.

Higher resolutions - The allowable resolution for virtual machines has been extended up to 2048×1920 from 1600×1200.

Jump List - Access Windows XP Mode applications with a “jump-list”. Right click on the Windows XP Mode applications from the Windows 7 task bar to select and open most recently used files.

Multiple Threads - Users will be able to run multiple virtual machines concurrently, each running in its own thread, which improves stability and performance.

To install applications in Windows XP Mode, you start by selecting Windows XP Mode from the Windows 7 Start Menu. You can install applications in Windows XP Mode just as you normally would on a physical PC. To run your application directly from the Windows 7 desktop, you can launch it from your Start menu.

Click here to download Windows XP Mode and Windows Virtual PC for Windows 7.

Note: Windows XP Mode RC requires RC or RTM version of Windows 7 Professional, Ultimate or Enterprise. It also requires a processor capable of hardware virtualization with AMD-V or Intel VT turned on in the BIOS.