I’ve just got done installing the Windows 7 XP Mode updates. This appears to be more than windows in windows, more like a supped up Virtual PC. I configured it as per the instructions on the Windows 7 site and it started XP as advertised. I attempted to add a Windows 2003 virtual machine, which was fine until I tried to add the integration features. The integration features do not play well on Windows 2003. Issues included corrupt graphics, a max resolution of 1027x 768 and failure to install drivers. To be honest though the setup clearly states Window XP, Vista and Windows 7 are the only supported OS’s.
Right now I’m trying a Windows 2008 virtual machine, we’ll see how that goes. At least initially it seems to be installing without problem. I’d really like to see this work, from a dev standpoint it would be nice to have an integrated Virtual PC given the torrent of CTP’s and beta’s coming out of Redmond these days. I’ll post my luck (or lack of) with Windows 2008.