I use Windows 7 64 bit and have not not had many issues installing most of my XP apps, large suites like Adobe or MS Office (MSO) have no issues at all, but for smaller open source apps you might need to find a current alternative, which there are plenty of. You shouldnt have to use "Compatibility Mode" for anything unless you encounter an issue (like it wont launch at all). Otherwise, most older apps work fine.. Also, If your daughter is a University/College student then she might be eligible to buy MSO 'Home and Office' 2010 for $89 through MS...