For Windows 7 users, you may download the new version of Virtual PC – Windows Virtual PC.
Remember to go to BIOS to enable the hardware virtualization. (See the full system requirement from here.)
There are a lot of new features that provided by Windows Virtual PC:
1. Integration with XP mode
2. US Support
3. Integration with Windows Explorer
4. Known folder integration between host and client…and so on.
After you installed the Windows Virtual PC, launch it and you will notice there is a new user interface for the Virtual PC console.
Creating a Virtual Machine
1. To create a new virtual machine, click “Create virtual machine” on the top menu bar.
2. Enter the name and the location where you want to store the virtual machine. 
3. Specify the memory and networking options. 
4. Specify the virtual hard disk or you can use the existing virtual hard disk that you created earlier. you can select “Enable Undo Disks”. Undo Disks is a feature that saves changes to a virtual machine in a separate undo disk file in case you want to reverse the changes. The Undo Disks setting applies to all virtual hard disks attached to the virtual machine 
5. Create “Create” to proceed the creation of new virtual machine.
6. If you want to modify any changes on the virtual machine, select the virtual machine you want to modify the settings, then click “Settings” from the top menu bar. Click “OK” to save all the changes. 
Tips:
1. If you created a virtual hard disk with “Undo Disk enabled”, remember to commit the changes to the virtual hard disk if you would like to have the changes saved to your virtual hard disk. Go to the virtual machine’s settings –> select “Hard Disk 1” (depends which virtual hard disk you are using) –> select “Apply Changes”. If you don’t want the changed saved to the virtual hard disk, then click “Discard changes”, whatever changes you made will be deleted.
