User of Windows 7 (Professional, Ultimate and Enterprise) will be able to download and install XP Mode feature that will allow them to run a virtualized copy of XP SP3 in order to minimize compatibility issues. However, to run this, you’ll need a PC that’s have: 2GB system RAM; A CPU that supports chip-level virtualization

To tell if your CPU supports chip-level virtualization both Intel and AMD have toolsm (you also need to have it switched on in the BIOS, which means digging out the manual if you’re not familiar with the system BIOS):

Intel Processor Identification Utility | AMD Virtualization Compatibility Check Utility

Source:→ ZDNet