XP mode is a special virtual machine running Windows XP. It’s handy for running older applications that won’t run on Windows 7, but will run on Windows XP. In order to run XP Mode, your computer must meet specific hardware requirements. More specifically, your computer’s bios and CPU must support hardware virtualization.
Instructions for turning on hardware virtualization in your computer’s BIOS are specific to model. Check the vendor’s Web site for details on how to access your computer’s BIOS and how to enable hardware virtualization.
To find out if your CPU supports hardware virtualization, download and run the Hardware-Assisted Virtualization Detection Tool (HAV). The HAV tool checks if you computer processor supports hardware virtualization and is it is enabled.