Now you can install any XP application that you want and run it in the Windows 7 environment with little or no problem! Follow the steps below. I am sure its the same for the 32bit version of Windows 7 you just need a processor with visualization technology. Like a quad core or a dual core. On the first page you can check if you have the right processor.

Install Windows 7 x64 and then go to this page:
http://www.microsoft.com/windows/virtual-pc/download.aspx


Install the one on the left first. It will take a little while to download. Once it is installed, click the link on the right and install that. It will update windows, its like a hot-fix.

Now Reboot and it will update during the restart. Once this is done log in and go to the start menu. You should see this:

Opening after restart

Click on Windows XP Mode and it will ask you for your password:

Logging in with the password you specified

Once you type in your password you will be logged in and it will look like this:

The XP virtual Desktop

Now while you are in there install a few programs and then log out and go to the start menu in Windows 7 again. You will see this:

The list of installed xp programs on your virtual machine

Click a program and you will likely have to log in again. You will see this:

Opening one of those files

Now the program will execute in Windows XP like fashions, but in the Windows 7 environment. Like below:

u-torrent and peer guardian running in XP mode on windows 7, notice the blue bar and the fact that it doesn't make screen shots in the task bar.