I had a thought while setting up a laptop for a colleague of mine that has a particular application that won't work in Windows 7 (I believe it's a 16 bit application, and he has already tested it on another Windows 7 box). Has anyone considered going through the install of the Windows XP Mode package, then while under Windows 7 Ultimate, attempted to boot the host machine from Windows XP Mode's already prepared VHD file? When attempting to mount the Windows XP Mode VHD file via the Disk Management Wizard on the laptop in question, I immediately got an Access Denied error message. Has anyone found a way around it? I wouldn't think this to be going against Microsoft's licensing terms (though I haven't been able to stay awake long enough to thoroughly study them ), since a Windows XP license is included with Windows 7 Professional and higher. I'm simply trying to use the VHD file they provide from the Windows XP Mode installer a different way. I haven't found anything that explicitly states that a properly licensed user of Windows 7 Professional or higher is not allowed to boot from the Windows XP Mode VHD file outside an environment like Windows Virtual PC.
If anyone does know how to do this, please do share your method. I am very curious as to if/how it can be accomplished.
Edit: After a bit more research, there is overwhelming user provided evidence that this cannot and does not work due to the nature of Windows XP's boot loader.