Windows Virtual PC (VPC) and Windows XP Mode (XPM, previously known as Virtual Windows XP or VXP) are two new optional components for specific editions of Windows 7 operating system.
Windows Virtual PC for Windows 7 allows users to run virtual machines for virtualization with additional features, such as Windows XP Mode, which allows user to access and run applications installed in virtualized instance of Windows XP on Windows 7 host desktop for backward compatibility.

The clever people at mydigitallife.info have put together a nice little guide to check if your CPU will cut the mustard with VPC.
Enjoy!

