XP Mode virtual or not?

I'm running W7 Pro 64-bit and installed XP Mode, all running fine. The procedure advised was to install Windows6.1-KB958559-x64-RefreshPkg.msu first (reboot) and then WindowsXPMode_en-us.exe (reboot). That done I installed 113 security updates, this morning another 5 security updates. I also installed a firewall and ant-virus prog.

From W7's start menu I see the option Windows Virtual PC and underneath sub entries Windows Virtual PC, Windows XP Mode and Windows XP Mode Applications.

Sub entry Windows XP Mode is of no use because it opens a folder with two files, desktop.ini and Windows XP Mode.vmcx
Sub entry Windows XP Mode starts XP
and
sub entry Windows XP Mode Applications shows the progs installed under XP Mode.

The Windows XP Mode base.vhd (1.18 GB) is on my d partition because I was hoping to install the while caboodle there but seems not possible.

No problems, my question is what is the purpose of Windows6.1-KB958559-x64-RefreshPkg.msu? Is my XP Mode setup virtual and correct?

Any tips most welcome.

When in doubt about a KB, refer to Google which in turn shows up the MS website with the details:
https://support.microsoft.com/en-us/kb/958559

(note that the URL has that number).

In short, this patch installs or updates the VirtuaPC virtualization engine into the computer, which in turn is used to run XP mode. Remember that "XP mode" is just a marketing name for a prepackaged virtual machine running Windows XP inside it, so it makes sense to have this update as a requirement.

Thanks Alejandro85 for KB info, I now understand.

The last part I cannot figure is the W7 Start menu shortcut that opens a folder with two files, desktop.ini (1 KB) and Windows XP Mode.vmcx (2 KB). Why should I have a quick access to these two files? Surely I'm running "XP mode" virtually and it has no contact to my installed W7?

I'm asking because prior to this I used "XP mode" via "VMLite XP Mode" (free) for a few years w/o any issues. Lately I experienced hiccups and was forced to dump it. It seems that VMLite XP Mode for desktop no longer actively developed and support no longer available. Their support forum now filling up with "cash loan" threads.

Hi!

I also installed xp mode in my new laptop running win7pro.

1. Do we agree, that this is a full virtual machine?
I would say so, and it is great because I have to run very old tools and programs that only runs in xp....
I have the rs 232 COM-port etc

(when comparing to vmware etc, this is way better. startup time is about 2 seconds, never crashes etc)

2, My guess is, that those shortcuts is simply if you want to launch program directly with the host (win7) or to run them in xp mode (virtual xp)

its a like "run this program in compability mode" but on a higher level!