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I am running Windows 7 RC with the new Virtual PC Beta for Windows 7. I created a new XP VM from scratch (since the XP Mode one uses a differencing drive image). When I shared it with a co-worker running Windows 2008 server it crashed VPC 2007.

Has anyone else attempted to share a VM between Windows 7 and another OS? Is there a way to make them compatible?

If not, I know that Virtual PC 2007 ran fine in Windows 7 Beta. Has anyone had any luck running the old Virtual PC 2007 in Windows 7 RC? It currently reports it as incompatible and blocks the install, but that doesn't mean there isn't a work around.

NOTE: I am specifically looking for a way to be compatible between VPC 2007 and Windows 7.

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You could try using a different VM system, for example VirtualBox.

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Yeah. Then you can mount the same virtual drives on the two OSs and have the same virtual machine. – trex279 Jul 25 '09 at 11:37
You are correct, that would work, but unfortunately my boss standardized on VPC 2007. – Jim McKeeth Jul 25 '09 at 21:51
They're both free, and there are conversion utilties for both. Would your boss get ticked if you went with VirtualBox? – Dave Aug 27 '09 at 14:33
I could go Virtual Box, but then I can't really share with the people who are using VPC 2007 then can I? – Jim McKeeth Oct 28 '09 at 2:21
I've successfully used VPC virtual drives in Virtual Box. I haven't tried re-opening them in VPC afterwards through, so don't know if using them in VBox stops them from being usable in VPC. – Ben Lings Nov 13 '09 at 23:30
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