CPU Virtualization vs Software Virtualization.
I uninstalled Windows XP Mode, then turn on the CPU's Virtualization and re-install Windows XP Mode. Windows XP Mode also works installed this way. I guess using the CPU's Virtualization is more efficent than using software Virtualization but I can not be sure of this.
I noticed that XP Mode complains that there is no Virus Checking Softwarw installed even though I have the software installed in Windows 7. I don't think it is necessary to install virus software in XP Mode but if anyone knows for sure I would appreciate them letting me know.