Win 7 introduces XP mode which basically is a Virtual PC running a XP virtual hard drive file. The virtual app feature allows the application installed in XP to be opened seamlessly on your Win 7 desktop. This is a very nice feature helps with some application compatibility issues. And it is free with Win 7 Pro and Ultimate edition.

What are the major concerns of using this feature?

1. It might consume one IP depends on your virtual NIC setting.
2. Since it is a Windows XP based virtual machine, you need to include one anti-virus software license for this PC...unless you want it to be completely local.
3. Patch management for one extra host in your network.
4. It is per-user profile based, so when you log in as a different user and want to use the application only works with XP, you have to reconfigure the XP mode and reinstall the application. Well, you can move around the VHD file...but you might lose some functionalities.
5. Extremely long first time launching...because you have to wake up/boot up the virtual machine first.
6. Depends on your hardware specs, it might cause minor performance issue.

What is your opinion on XP mode?