I have been reading about Windows XP mode on Windows 7. I am still not too sure if it is about virtualization having the whole XP operating system installed on top of Windows 7 so the two operating systems are available at the same time, hence the processor with hardware-assisted virtualization and hyper-threading is a pre-requisite.
Or is it a compatibility mode like that on Vista with which one can install certain old applications in any mode of any older operating systems such as XP, 2000, NT4, 95 and so on?
