Specify how you want to configure the DVD Drive
At this point, move down to the IDE Controller 1 | DVD Drive section and choose how you want to install the operating system and applications on your virtual machine. You can use ISO images files or the physical CD/DVD drive. As shown, I've selected the Physical CD/DVD drive option and indicated the appropriate drive letter. This will make it easy to install Windows XP from the optical disc. Click Apply to save your changes.
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running under Win 7 and Windows VPC into this environment? Or can you do some sort of conversion? I have a stable virtualized Win 7 environment that I don't want to recreate if possible.
Unless you have an old MSDN subscription, I think that full retail would be the only valid license. What do you think? An interesting question would be what happens upgrading Win7 with XP Mode installed? Also, what would be the licensing implications of using the XP Mode VM in Win8, if it is possible?
Running Windows 7 With XP 3 sounds good, an running Windows 8 with XP 3 sounds even better... however Windows XP's interface needs better improvement to utilize the benefits of higher ram. XP will still try to default to the 2G Ram limitation. I have found the use of 2 separate HDD's with the different Windows installations do most of the job; but the ability to actually use XP programming together with later versions of Windows I have found to still be in the future.