If you want to use Windows XP as a guest operating system, you will have to use the Virtual Windows XP downloadable package available from the same website. When you use this package with Windows Virtual PC, it automatically creates a virtual machine for it with a version of Windows XP installed on the virtual hard disk.
To set up Windows XP mode:
1. Double-click VirtualWindowsXP.msi
2. The Virtual Windows XP wizard will open. Proceed through the steps of the wizard to complete the installation.
3. When the virtual machine is booted up or started for the first time, the Virtual Windows XP license agreement appears. To use Virtual Windows XP, you must obviously accept it. Then click on Next to continue.
4. Set up a password for the “User” account. This is the account with administrator privileges that the wizard creates automatically. It is also the default account used to run Windows XP mode. Make sure you check “Remember credentials” if you don’t want to enter the password each time you start Windows XP mode.
5. After Windows Virtual PC configures Virtual Windows XP, the virtual machine will be ready to be used.