Windows XP setup procedure within Window7 operating system

http://www.microsoft.com/windows/virtual-pc/default.aspx

Installing Windows Virtual PC Beta edition in the Windows 7 is simple; you just run the installation program, and then restart the system. You'll then find Windows Virtual PC on the Start menu. Once you have Windows Virtual PC installed, you can launch the Virtual Windows XP Setup Wizard and just follow the steps. When you finish, you'll find Virtual Windows XP on the Start menu right inside the Windows Virtual PC folder, and will be able to access a virtual machine with a fully installed version of Windows XP SP3 on the virtual hard disk.

When you are running Virtual Windows XP, you'll find a small menu bar at the top of the window, that looks and works like the Remote Desktop menu bar. You use the thumb tack icon toggle the menu bar display between Auto-Hide and Always Show. The Action drop down menu contains two commands: Restart and Close. Selecting the Close command will actually put the Virtual Windows XP system into hibernation.

To install your XP applications, launch Virtual Windows XP, insert the CD, and install the applications just alike you normally would in Windows XP. When you do, you'll of course find the application on the Virtual Windows XP Start menu, but you'll also find the application on the Windows 7 Start menu. This will allow you to launch your XP application without having to first load Virtual Windows XP.

Local Group Policy Editor is available to tweak, gpedit.msc

Checkout Paul McFedries, Windows 7 Unleashed book review

http://the-gadgeteer.com/2009/09/13/a-wild-eyed-salivating-rat-windows-7-unleashed-book-review/