Windows 7�S XP mode (part of the Windows Virtual pc) lets you run a separate version of XP inside the newer OS. The Virtual pc is a free but very large download (it contains a complete copy of XP) that works in the professional and Ultimate editions of Windows 7. If you have Windows 7 running nicely on your network, with access to the Internet, networked printers, and shared folders on other computers, XP mode is likely to disappoint you initially. You�ll probably get the Internet just fine, but not your local network. So you�ll have to set up XP for the network separately. First, however, you have to tell Windows 7 how XP should access the network. If you are currently running XP mode, exit it before moving on to this step of the process.
In Windows 7, click Start, type virtual, select Windows Virtual PC, and press
. This opens a Windows explorer window to the Virtual machines folder. Right-click the Windows XP mode file and select Settings (not �properties��which is an easy mistake to make). In the left pane, select Networking. In the right pane, for adapter 1, select your network adapter. Click OK. When the dialog box is gone, load XP mode. To do this from the same explorer window, double-click the Windows XP mode file.
In your virtual XP environment, select Start Run, type netsetup and press . Click Yes at the �want to continue� dialog box. In the resulting wizard, answer its questions as if your system were a stand-alone XP pc. Follow these tips as you do so:
1. make sure that the computer name you enter differs from the one you use for the same pc�s normal, Windows 7 environment.
2. Use the same Workgroup name that the other network PCs use.
3. Turn on file and printer sharing. If the pc still can�t access the network, you likely have other network problems.
Source of Information : PC World December 2010