Microsoft removes VM hardware requirements
Microsoft has been criticized for complicating things by having XP Mode only work on processors that supported either Intel’s VT or AMD’s AMD-V. This requirement was troublesome and confusing, as many Intel owners weren’t sure if their CPU supported hardware virtualization, and if it did, whether it was turned on in the BIOS. Now that problem has been eliminated, removing a barrier to the adoption of Windows 7 among small and mid-size businesses that still cling to Windows XP.
Windows XP Mode: http://www.microsoft.com/windows/virtual-pc/download.aspx
Update for Windows 7 (KB977206) – Install this update to remove the prerequisites required to run Windows Virtual PC and XP mode. The prerequisites include a processor which supports hardware assisted virtualization (HAV) which is also enabled in the BIOS. After you install this item, you may have to restart your computer.