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Thanks to Lemmi for this one:

Compatibility mode provides an environment for running programs that more closely reflects the behavior of either Microsoft Windows 95 or Microsoft Windows NT 4.0. These modes resolve several of the most common issues that prohibit older programs from working correctly with Windows 2000. Programs that experience issues after migration may benefit from being started in one of these compatibility environments.

The Compatibility-mode technology is currently used by Windows 2000 to ensure built-in compatibility for many popular programs. With Windows 2000 Service Pack 2 (SP2), administrators can manually enable and use this technology to provide solutions for their own programs. Only administrators can enable this technology for users.

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