Windows 7 Virtual PC installation error

"the setup file must  be downloaded and installed for this feature to work" 

There is definitely an issue with the first download link as it only downloads the Windows Activation update and NOT the XP Mode installer until you click it a SECOND TIME (dowloaded via Google Chrome). This is a horrible user experience.

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XP Mode (if its installed) should be listed under Programs and Features.
Windows VPC will be under the "Turn Windows features on or off"
YOu might want to try using FireFox for the download, I've seen situations
where IE won't download it.
You could also try the direct download for them:
VPC: (authentication required)
http://www.microsoft.com/downloads/d...9-2545b08e11dd
XP Mode:
http://www.microsoft.com/downloads/d...9-4f99e757064e

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I would suggest you to download virtual PC and install it from the below link and check if it helps:

Install and useWindows XP Mode in Windows 7

How does Windows XP Mode work?

Windows XP Mode works in two ways—both as a virtual operating system and as a way to open programs within Windows 7. Windows XP Mode runs in a separate window on the Windows 7 desktop, much like a program, except it's a fully functional version of Windows XP. In Windows XP Mode, you can access your physical computer's CD/DVD drive, install programs, save files, and perform other tasks as if you were using a computer running Windows XP.

When you install a program in Windows XP Mode, the program appears in both the Windows XP Mode list of programs and in the Windows 7 list of programs, so you can open the program directly from Windows 7.

Programs installed in Windows XP Mode in the Windows 7 Start menu

Notes

• Almost all programs compatible with Windows Vista, and the majority of Windows XP programs, run well in Windows 7. If a program doesn't, first try the Program Compatibility troubleshooter. It can fix several problems and is included in all editions of Windows 7. For more information, see Open the Program Compatibility troubleshooter.
• Some hardware and devices that work in Windows 7 might not work in Windows XP Mode. They might not be detected in Windows XP Mode.
• Windows XP Mode was primarily designed to help businesses move from Windows XP to Windows 7. It isn't optimized for graphic-intensive programs such as 3D games, nor is it well suited for programs with hardware requirements such as TV tuners.

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Before you begin

In order to use Windows XP Mode, you need to make sure your computer meets certain system requirements. If your computer doesn't meet the requirements, Windows Virtual PC and Windows XP Mode won't work correctly, even though you might be able to download and install them. Before you begin, do the following:

• Find out whether your computer's CPU is capable of hardware-assisted virtualization. To check, go to the Windows XP Mode and Windows Virtual PC support website and download the Hardware-Assisted Virtualization Detection Tool. This utility can check whether your computer will work with Windows XP Mode.
  If you receive an error message saying "There is no hardware-assisted virtualization support in the system," then your computer's CPU doesn't support hardware-assisted virtualization. For information about an update that can help, see Why am I receiving errors about hardware-assisted virtualization (HAV) when I try to use Windows XP Mode and Windows Virtual PC?
• If your computer's CPU supports hardware-assisted virtualization, make sure it's turned on. You might need to turn on virtualization settings in your computer's basic input/output system (BIOS).
  If you receive an error message saying "Hardware-assisted virtualization is disabled," this means your computer supports hardware-assisted virtualization, but you need to change settings in your computer's BIOS to turn on hardware-assisted virtualization.
  

  Warning

  Be careful when changing BIOS settings. The BIOS interface is designed for advanced users, and it's possible to make a change that could prevent your computer from starting correctly. For more information, see BIOS: frequently asked questions.
  How to turn on virtualization settings in your computer's BIOS can vary depending on the BIOS manufacturer. For sample instructions on how to do this, go to the Windows XP Mode and Windows Virtual PC support website.
• Make sure you're running Windows 7 Professional, Enterprise, or Ultimate. To find out which edition of Windows 7 you're running, click the Start button , right-click Computer, and then click Properties. The edition of Windows 7 you are running is displayed under Windows edition near the top of the window.
  If you're not running Windows 7 Professional, Enterprise, or Ultimate, you might consider using Windows Anytime Upgrade to upgrade your edition of Windows 7 to Windows 7 Professional or Ultimate. (Windows 7 Enterprise isn't available in Windows Anytime Upgrade.)
  

  Notes

  • Before you upgrade to another edition of Windows 7, find out whether your computer supports hardware-assisted virtualization. If it doesn't, there's an update that can help. For information about this update, see Why am I receiving errors about hardware-assisted virtualization (HAV) when I try to use Windows XP Mode and Windows Virtual PC?
  • For more information, search Help and Support for "Windows Anytime Upgrade."

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Installing and using Windows XP Mode

To use Windows XP Mode, you need to download and install Windows XP Mode, which is a fully licensed version of Windows XP with Service Pack 3. You also need to download and install Windows Virtual PC, which is the program that runs virtual operating systems on your computer.

When you install a program in Windows XP Mode, the program becomes available for use in both Windows XP Mode and Windows 7.

Show all

To download and install Windows XP Mode

1. Go to the Windows XP Mode and Windows Virtual PC website, and then click Get Windows XP Mode and Windows Virtual PC now.
2. Under Select your edition of Windows 7 and desired language for installation in step 2, click the Select system drop-down list, and then click the edition of Windows 7 you're currently running.
3. Click the Select language drop-down list, and then click the language you want to use.
4. Under Download and install Windows XP Mode, click Windows XP Mode.
   • To find out which edition of Windows 7 you're running, click the Start button , right-click Computer, and then click Properties. The edition of Windows 7 you're running is listed under Windows edition (and 32-bit and 64-bit information appears under System, next to System type).
5. Click Open to install the program immediately; or click Save to save the installation file to your computer, double-click the file, and then click Run.
   We recommend clicking Save and keeping the file on your computer in case you ever need to reinstall Windows XP Mode.
6. In the Welcome to Setup for Windows XP Mode dialog box, click Next.
7. Choose the location for the virtual hard disk file that Windows XP Mode uses, or accept the default location, and then click Next.
8. On the Setup Completed screen, click Finish.

To download and install Windows Virtual PC

1. Go to the Windows XP Mode and Windows Virtual PC website, and then click Get Windows XP Mode and Windows Virtual PC now.
2. Under Select your edition of Windows 7 and desired language for installation in step 2, click the Select system drop-down list, and then click the edition of Windows 7 you're currently running.
3. Click the Select language drop-down list, and then click the language you want to use.
4. Under Download and install Windows XP Mode, click Windows Virtual PC.
   • To find out which edition of Windows 7 you're running, click the Start button , right-click Computer, and then click Properties. The edition of Windows 7 you're running is listed under Windows edition (and 32-bit and 64-bit information appears under System, next to System type).
5. Click Open to install the program immediately; or click Save to save the installation file to your computer, and then double-click the file.
6. Click Yes to install Update for Windows (KB958559).
7. If you accept the license terms, click I Accept.
8. After installation is complete, click Restart Now to restart your computer.

To set up Windows XP Mode for first use

1. Click the Start button , click All Programs, click Windows Virtual PC, and then click Windows XP Mode.
   Windows Virtual PC and Windows XP in the list of programs
2. If you accept the license terms, click I accept the license terms, and then click Next.
3. On the Installation folder and credentials page, accept the default location where Windows XP Mode files will be stored, or choose a new location.
4. Type a password, type it again to confirm it, and then click Next.
5. On the Help protect your computer page, decide whether you want to help protect your computer by turning on automatic updates, and then click Next.
6. Click Start Setup.
   After setup is complete, Windows XP Mode opens in a separate window.

To install and use a program in Windows XP Mode

Note

Antivirus software isn't included with Windows XP Mode. Even if your computer running Windows 7 already has antivirus software, you should also install antivirus software in Windows XP Mode to help defend your computer against viruses.

1. In Windows 7, click the Start button , click All Programs, click Windows Virtual PC, and then click Windows XP Mode.
2. In Windows XP Mode, insert the program's installation disc into your computer's CD/DVD drive; or browse to the program's installation file, open the file, and follow the instructions to install the program.
   Installing a program in Windows XP Mode
3. Click the Close button at the top of the Windows XP Mode window.
4. In Windows 7, click the Start button , click Windows Virtual PC, click Windows XP Mode Applications, and then click the program you want to open.
   

   Note

   If the Windows XP Mode window is open when you try opening a program in Windows XP Mode from Windows 7, you'll be prompted to close the virtual machine. Be sure to save any data you want to keep in Windows XP Mode before closing it.

Article ID: MSW700017