From The Inquirer:

The discovery that Windows 7 will use desktop virtualization so you can run Windows-XP-compatible applications caused almost as much excitement as the news the Windows 7 Release Candidate would ship this week and next.

The planned Windows XP Mode will, theoretically, let you keep on running your existing applications on a brand-new Windows 7 machine, even if the applications themselves don't yet run natively on Windows 7.

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