New
#11
The name is unfortunate. As discussed, XP Mode is a combination of both Virtual PC as well as an activated and ready to use copy of Windows XP XP3 that owner of Windows 7 Professional, Enterprise and Ultimate are permitted to use. It's only the preactivated licensed copy of XP that isn't available to Windows 7 Home Premium or below.
There is absolutely nothing wrong with loading a virtualization platform of your choice (Virtual PC, VMWare Player/Workstation, Oracle Virtualbox). From there, you can install any operating system you are legally entitled to use.