As you may know, 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.

Before I get into what has changed from beta to RC, I’d like to take a moment to clarify what Windows XP Mode is designed for, and highlight the point that in many cases Windows XP Mode will not be necessary. Windows 7 has a strong compatibility story with Windows Vista, and many applications that currently run on Windows XP-based or Windows Vista-based PCs should just run natively on Windows 7 – allowing you to take advantage of better performance, better management and better security built into Windows 7. In most cases, we recommend running applications natively in Windows 7. Windows XP Mode provides what we like to call that “last mile” compatibility technology for those cases when a Windows XP productivity application isn’t compatible with Windows 7. Users can run and launch Windows XP productivity applications in Windows XP Mode directly from a Windows 7 desktop. I also strongly recommend that customers install anti-malware and anti-virus software in Windows XP Mode so that Windows XP Mode environment is well protected. 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.