I am in the uncomfortable position of having to run a few older applications under Windows 7. These applications are infamous for getting their tentacles everywhere into Windows and screwing up random things; for obvious reasons, I'd like to stick them in a VM, get done what I need done, and then wipe them from my system.
The easiest VM to set up on Windows 7 Professional seems to be Microsoft's Windows XP Mode. XP is known to be compatible with these older applications, so it's the guest OS of choice anyway. Will XP mode provide sufficient isolation so that if things get screwed up, I can just reset the VM and start over? How easy is it to completely remove a Virtual XP Mode configuration from my system? If Virtual XP Mode isn't good enough, will a full Microsoft Virtual PC install of XP do the job, or do I have to move up to something like VMWare?