Yes it is. But the newer version allows for XP mode, and also passing thru attached USB devices. You can now use usb devices on your guest OS that are from the Host OS.
There are some other features, but to me, it is not that much different. Oh yeah and the new integrations maps drives on the guest machine to the host machine...
Today i tried VPC 2007 on my Xp with the vhd (which is a dualboot of Xp/W7) i had created previously in W7. Wow it boot up superfast (faster than XP Mode and VMware). I am amazed. When did VPC 2007 came out?