I tried only once to use XP mode because I have my own licenses for XP and I already had a functioning XP virtual machines. So when I couldn't get it to run I did try it again. Still though it's the same as running any other virtual pc. You have 2007; that's the only version available to Windows 7. From the virtual pc console you have to open up the settings for the virtual pc to see if undo disk is enabled. I'm not at home now so I can't check where exactly to go.
OK, I think I found it - it'll be Undo Disks in Settings. Pretty obvious once I'd found out that rightclicking the XP Mode icon had Settings in the drop-down menu. Never needed it before AFAIK. I also found a switch to throw that makes XP Mode shut down properly when the cross at the top right of the XP screen is clicked. Weird that the default setting was to hibernate it. And I see a lot of people find Undo Disks makes things complicated, so I'll probably just use that as a last resort. Good to know where it is though.
It it wasn't enabled that would explain when those files don't exist. What undo disk does is write any changes to temporary files rather than the permanent one until you either discard the changes or make them permanent which integrates them into the permanent file. I'm not sure if there is a performance decrease but it certainly complicates things especially if you have multiple restore points which can be done with VMWare. Integrating the changes takes awhile especially the longer you have gone without doing so. IMO it's not a good idea for long term use. VMWare makes it more confusing but changing the wording, having them created automatically, and changing the wording compared to Virtual PC. If you don't need it I wouldn't turn it on. It has to read files from both the permanent file as well the temporary files and you have increased space usage.
Yes it looks like I'd best avoid using it for the time being at least. One thing I noticed in the settings was the option to make XP mode shut down (instead of hibernating) when the cross on the top left is clicked. I don't know why they made it hibernate by default. It's quicker and easier to just minimise it if I want to resume my work in XP later.
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