Microsoft is trying to make it easier to sway users of Windows XP onto the latest version of its operating system, CNET reports. For some time now, the company has been quietly building a "Windows XP mode" that uses virtualization to allow Windows 7 to easily run applications designed for Windows XP. According to sources familiar with the product, the application compatibility mode is built on the Virtual PC technology that Microsoft acquired in 2003, when it scooped up the assets of Connectix. By adding the compatibility mode, Microsoft is aiming to address one of the key shortcomings of Windows Vista: its compatibility issues with software designed for Windows XP and earlier versions of the operating system. The technology has not been part of the beta version of Windows 7 or previously disclosed by Microsoft, but it is expected to be released alongside the upcoming release candidate version…

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