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I'm fairly certain that this is not possible, but just wanted to ask the really smart people to be sure.

My company wants to run a Windows 7 VM (using any virtual machine software) on an desktop running XP. If this is possible, which VM software should they use?

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Yes, this is possible. You can use Microsoft Virtual PC or free VirtualBox. –  Alex Farber Sep 29 '11 at 18:23

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Given that the VM software does emulate a complete PC, it is possible to run later versions of Windows on earlier version. Pretty much any decent VM software will allow you to do this.

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You would think so, but I've tried VirtualPC and VirtualBox and both seem to start up, but BSOD. –  P.McSwain Sep 29 '11 at 18:34
    
Although, I was trying to create the VM from VHD files instead of just installing from scratch...so maybe I'll give that a try next. –  P.McSwain Sep 29 '11 at 18:36
    
Obviously it's hard to say what's going wrong but I have run Win7 in a VM on XP using VirtualBox and it worked. However I did put a fresh install into the VM, so that might be the one difference that actually gets things to work. Windows can get a bit funny if its ideas of what the hardware looks like and the "real fake" hardware differ too much. Like specifying the wrong type of disk controller or controller mode. –  Timo Geusch Sep 29 '11 at 18:37
    
If I remember, MS said, cant do 64 virtual on 32bit system? –  Psycogeek Oct 1 '11 at 3:52

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