FayB-
Windows XP Mode was designed for small and medium sized business that use older versions of business-specific software. In the Windows XP Mode example video, the program MapPoint2002 was used as an example of a program that would run in Windows XP Mode. If you aren't running a small business or any mission-critical software, chances are you won't need to use Windows XP Mode.
To determine if you need to run a program in Windows XP Mode:- Try installing the program through Windows 7.
- If that fails, right-click on the setup file and select troubleshoot compatibility.
- Try altering the compatibility option. Right-click on the file, select properties and go to the compatibility tab and check the box that says Run this program in compatibility mode for:. Then select the version of Windows the program is compatible with.
In answer to your second question, if you have programs that you absolutely must use, upgrading to Windows Professional, Enterprise or Ultimate editions will likely be your only option. Alternatively, you could download a free virtual machine such as
Sun VirtualBox. You will need a valid version of XP, however, to run VirtualBox.
I hope that helps. Please let me know if you have any more questions.