Paul Thurrott has a series of pictures up about this. The idea here is that Microsoft can begin to discard technology that exists for backward compatibility by including XPM and yet still claim Windows XP compatibility for those that need it. (With shortcuts placed in the Start Menu.) That way, users can run Windows XP-based applications (like IE 6) alongside Windows 7 applications under a single desktop. Instead, as you install applications inside the virtual XP environment, they are published to the host (Windows 7) OS as well. (That is, it will not be included in the box with Windows 7, but is considered an out-of-band update, like Windows Live Essentials.) XPM works much like today’s Virtual PC products, but with one important exception: As with the enterprise-based MED-V (Microsoft Enterprise Desktop Virtualization) product, XPM does not require you to run the virtual environment as a separate Windows desktop. It will be made available, for free, to users of Windows 7 Professional, Enterprise, and Ultimate editions via a download from the Microsoft web site. XP Mode consists of the Virtual PC-based virtual environment and a fully licensed copy of Windows XP with Service Pack 3 (SP3). It is called Windows XP Mode (XPM) and the purpose is to change the backward compatibility issues that each new Microsoft OS release has to deal with. Paul Thurrott and Rafael Rivera are revealing information on what has been called a ““secret feature†of Windows 7 that is due to be announced officially when the Windows 7 Release Candidate rolls out. ActiveSync 3.5s Primary focus was to provide integrated support for the new Windows and Office XP releases that were to come at the end of the year, as well as for the pending release of Microsoft Pocket PC 2002 (The fourth generation sister Product to Microsoft H/PC).
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