First, I'd like to say something about this before anyone accuses the wrong group here. This is in no way Microsofts fault. You'll understand why it's not their fault this time.
But, it seems that many current intel cpus even dating back to the Pentium D series cannot run XP mode in Windows 7. This is because Intel decided to not include Virtualization Technology(VT for short) into most of their conroe based cpus, to keep cost down of the processors. This was the wrong move to make Intel, many programs for businesses are optimized and supported by XP fully, and without this VT planted inside the processors, Windows 7 cannot address the program in the correct manner. Here is a list of some cpus that do not support Intel VT.
Q8XXX, E8190, E7XXX, E5XXX, E4XXX, E2XXX, E1XXX, 9X5, 8XX
There are some intel cpus which entire line supports it, all of the e6, i7, atom, and pentium d 9X0 series support VT. However, due to restrictions of the pentium D series, VT is almost useless in an environment like 7. This is bad news for both Intel and Microsoft, businesses can't upgrade to Windows 7 and expect better performance results if they can't run their programs they need to run, and Intel will slowly start to lose the budget business battle, seeing that all modern AMD cpus dating back almost to most 939 processors and even some 754 processors support VT in their own fashion.
http://blogs.zdnet.com/Bott/?p=946
http://www.amdzone.com/index.php/news/wind...ndows-7-xp-mode
