The main reason why you would want to Install Windows XP on Virtual PC is that some software are not compatible with newer OS, and some companies are dependent on those software.
1. Download and install Microsoft Virtual PC.
2. Launch Virtual PC. Select “Create a Virtual Machine” from the Wizard.
3. Name you Virtual Machine. i.e Windows XP. If is Windows XP you are installing. Click Next.
4. By default it will automatically detect the Operating System minimum Hardware Requirements. Click Next.
5. In the Memory window you can change the default size Ram or move the handle to increase or decrease virtual size Ram. Click Next.
6. In the Virtual Hard Disk Options create A new virtual hard disk. Click Next.
7. In the Virtual Hard Disk Location. leave it in the default location. Click Next, and finish the wizard.
8. On the Virtual PC Console click on New, CD to select the CD/DVD or .ISO location of where the Windows XP is located.
9. If it doesn’t start you can always go to Action and click on reset.