Recently The Window Blog (official MS place to post all news about forthcoming windows seven) published interesting article: Windows XP Mode and Windows 7.
it was published here
In short: you will able to run legacy windows xp application on windows seven via virtual pc environmet.. sound boring at my sight.
Windows XP Mode is specifically designed to help small businesses move to Windows 7. Windows XP Mode provides you with the flexibility to run many older productivity applications on a Windows 7 based PC.
All you need to do is to install suitable applications directly in Windows XP Mode which is a virtual Windows XP environment running under Windows Virtual PC. The applications will be published to the Windows 7 desktop and then you can run them directly from Windows 7.
Windows XP Mode and Windows Virtual PC are best experienced on your new Windows 7 PC. We will be soon releasing the beta of Windows XP Mode and Windows Virtual PC for Windows 7 Professional and Windows 7 Ultimate.
