Here is the step by step guide to install Virtual Windows XP on Windows 7, (http://www.windowsvalley.com/blog/install-virtual-windows-xp-on-windows-7-or-enable-xp-mode-aka-xpm/ ) that requires hardware assisted virtualization.
Since there were few queries, “How do I check my processor support hardware virtualization or can we install virtual Windows XP on Windows 7? So here is simple way to check it out and get rid of such queries.
Download the software tool called Securable from here (http://www.grc.com/securable.
It checks basically three features of processors, that covers few aspects:
Is it 64-bit processor?
Does the processor support Data Execution Prevention(DEP)?
Does the processor support Hardware Virtualization? that can be Intel-VT / AMD-V for Intel and AMD processors respectively.
For some more information:
http://www.windowsvalley.com/blog/does-my-processor-support-hardware-virtualizationwindows-xp-mode-check-it-out/