The next version of Virtual PC is available for download on the Connect site. I downloaded this last night and used it and right away I noticed it was much faster. I had been working with several VPC's all day in VPC 2004 and after uninstalling VPC 2004 and installing 2007 the speed difference was very noticeable. The drag and drop function of being able to move files from your host OS to the guest OS is still there as well. The interface looks the same.

Regards.

What's new in Virtual PC 2007 Release Candidate

Hardware-assisted virtualization*
Virtual PC 2007 includes support for virtualization technology from Intel and AMD. By default, hardware-assisted virtualization is enabled if the feature is enabled on the physical computer. You can turn this assistance on or off for each virtual machine by modifying the virtual machine settings.

Built-in support for network installations
It is possible to install an operating system on a virtual machine through the network. The virtual machine network adapter includes support for PXE boot. This means that when the appropriate network infrastructure is in place, you can perform a network installation of a guest operating system without needing a PXE boot floppy disk.

Support for Windows Vista as a host operating system**
This beta release of Virtual PC 2007 introduces support for Windows Vista as a host operating system. The following versions of Windows Vista are supported: Windows Vista Business, Windows Vista Enterprise, Windows Vista Ultimate.

Support for Windows Vista as a guest operating system
This beta release of Virtual PC 2007 introduces support for Windows Vista as a guest operating system. The following versions of Windows Vista are supported: Windows Vista Business, Windows Vista Enterprise, Windows Vista Ultimate.

Support for 64-bit host operating system
This beta release of Virtual PC 2007 supports 64-bit host operating systems. However, there is no support for 64-bit guest operating systems.

* Installing Virtual PC 2007 Beta on a computer that has AMD hardware-assisted virtualization support and uses an x64 version of Windows as the host operating system may generate a bug check and shut down the operating system. This occurs because x64 versions of the Windows operating system protect a critical system register that Virtual PC 2007 modifies to enable hardware-assisted virtualization. You can resolve this issue by installing a hotfix prior to installing Virtual PC 2007. The hotfix is available and can be downloaded from this beta site by clicking on the 'Downloads' link on the left pane of this page. (This hotfix should not be used with Windows Vista)

** On upgrading your host from Windows XP to Windows Vista, running Virtual PC 2007 Beta may throw an error message "The Virtual PC 2007 Beta release has expired". You can resolve this issue by first uninstalling and then reinstalling Virtual PC 2007 Beta.