Windows XP Mode is specially designed for small and medium-sized businesses to help ease the migration process to Windows 7 by providing additional compatibility for their older productivity applications. The newly updated Windows XP Mode now works with the RC and RTM versions of the Windows 7 Professional, Ultimate and Enterprise SKUs. For all up guidance on Windows 7 Migration, please go to the this Windows XP to Windows 7 Migration resource on TechNet.
In most cases, we recommend running applications natively in Windows 7 as many applications that currently run on Windows XP-based or Windows Vista-based PCs should just run natively on Windows 7. Windows XP Mode provides what some like to call “last mile” compatibility, where its clear that an application isn’t compatible with Windows 7 and is likely never to be. In this case, this technology enables users to run Windows XP applications in Windows XP Mode directly and seamlessly from a Windows 7 desktop.
You can download the Release Candidate from the following location: Windows XP Mode Release Candidate
Finally, for customers that manage several Windows PCs running Windows XP Mode and want to simplify management tasks, we offer Microsoft Enterprise Desktop Virtualization (MED-V) as part of the Microsoft Desktop Optimization Pack.