Windows XP Mode is a new Windows 7 feature that lets you run older Windows XP applications on your Windows 7 desktop. Windows XP Mode is available for the Professional and Ultimate editions of Windows 7.
In order to use the Windows XP Mode in Windows 7, your system must support hardware virtualization (and also the option should be enabled in the BIOS). The Microsoft® Hardware-Assisted Virtualization Detection Tool (HAV detection tool) helps you check if your computer processor supports HAV. The tool also checks if this setting is enabled for the processor.

References
How to confirm your PC can run Windows XP Mode
Download: Windows XP Mode & Windows Virtual PC
System Requirements: Windows Virtual PC
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