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How to install Virtual PC 2007 on Windows 7?
Windows Virtual PC requires hardware-assisted virtualization. But what if your processor doesn’t support it? Then you may want to install Virtual PC 2007, but in most cases, you get an error saying:
This program is blocked due to compatibility issues. Virtual PC 2007 SP1 is not supported on this version of Windows. For more information, contact Microsoft.
How to solve this problem? Virtual PC Guy wrote that in his post Running Virtual PC on Windows 7. This "hack" is not official supported by Microsoft, but it works…
What you need to know is that you will only receive this warning if you have installed Windows Virtual PC. If you get this, and you want to use Virtual PC 2007 instead of Windows Virtual PC, you will need to uninstall Windows Virtual PC. Note – it will not work if you just uncheck Windows Virtual PC under the Windows Features dialog. You need to actually uninstall the Windows Virtual PC update.
If your processor supports hardware assisted virtualization (Intel-VT or AMD-V), you can install Windows Virtual PC and read my articles:
Virtual PC is completely integrated in Windows 7
How to add new virtual machine in Virtual PC?
Windows XP mode

