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Dual Boot Computer - Windows 7 and Windows XP

I am assisting a client with a new computer setup.  The software he uses runs in Windows XP and the developer says it will not run in Windows 7.  I am hoping it may run in XP Compatibility Mode but if not I will need to load XP on to the new system.  If this is the case I am thinking of making it Dual Boot.  My questions are:

Is there anything special I need to do when I install the program?

If I need to do a dual boot I have read that I need to install XP first then reinstall 7.  I found information where after shrinking the volume, creating a simple volume, installing XP on it you then create a boot loader.  Here is the link.  howtogeek.com  What do you think?

Is there any reason if I can't run the program in Win 7 that I only have the computer run XP, they want to replace their XP machine.  It is for a doctors office and they use limited applications.

If I need to install XP I am planning on using their license from their old machine then recycle their old computer.  Is there any problem with this since they already own the XP license?  It seems to me that XP is very forgiving and reinstallable on a new machine.
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As I noted above, the XP Mode virtual machine is by far the most transparent way to resolve this, as the user interface remains the Windows 7 UI ... it simply runs within the XP virtual machine "in the background".     XP compatibility mode would be even better -- but you've already noted you're going to try that first.

If you must use a dedicated hardware boot for XP, I'd recommend a good 3rd party boot manager like Boot-It BM that completely isolates the two OS's.    Using two different disks (as suggested above) is a reasonable degree of isolation (better than the XP or '7 managers), but the OS's can still "see" each other;   with Boot-It they're completely isolated and do can't even "see" each other.    They can be on the same disk, or different disks -- doesn't matter.     For example, my main system has 8 different bootable OS's (all on the same physical disk).   I'll attach the boot menu so you can see how simple it is at boot time to choose the OS.


My-New-Boot-Menu-with-Win7.jpg
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Okay...I met with my client and the Office software they use (Chiropractic specific) was written for a 32 bit system.  If compatability mode does not work will it work in a XP Virtual environment that is part of a 64 bit system?

Fortunately, her XP is not OEM so I should be able to install it on her Win 7 system if needed, correct?  We would then recycle that computer, may even use the HD for a backup drive!
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And your Win 7 hardware should have enough resources to run XP Mode.
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>>Fortunately, her XP is not OEM so I should be able to install it on her Win 7 system if needed, correct?

Yes, you can install it wherever you want if it's retail as long as you remove other installations.

Is the incompatibility anything newer than XP as an operating system or just the 64 bit environment?
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Running Compatabily mode in Win 7 Home did not work.  Wish me luck...My client has Windows 7 Home but I have a copy of Premium.  I will follow Run5k: instructions to download and run Windows XP Mode after installing Win 7 Premium.  Making recovery disks now of the original system.
Premium doesn't include XP Mode, you'll need Pro, Enterprise or Ultimate installed.
Otherwise you could use Virtual PC but you'll need a retail license for XP.
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MASQUERAID: Sorry...I meant Professional.

garycase: No I haven't tried it on a 32bit system...I will...Thanks!
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Ok...I'm back...I can't test the software on my Win 7 32 bit computer, computer is not recognizing my DVD drive (will work on that later)  

Microsoft says that I can move from a 64-bit version of Windows to a 32-bit version of Windows 7 by choosing the Custom option during Windows 7 installation.  Do you agree?

If so can I use the recovery partition on the HP Desktop?  Will it allow me to do a custom install and choose the 32 bit version?
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Ok...I am repairing my 32 bit system to test the software.

In the mean time...if the software runs would your suggest turning his 64 bit Win 7 Home machine into a 32 bit Win Home machine or upgrade his 64 bit system to Professional and running XP Mode virtual machine?
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The software runs in Vista 32 bit so it should run in Win 7 32 bit, correct?

If I load Win 7 32 bit I will lose all software that came with the computer.  So for example: can I copy the Microsoft Office Program to work after I reinstall Win 7 32 bit or do all such programs need to me installed from a disk?

Plus all other programs and drivers would need to be reinstalled...would this be reason enough to upgrade his 64 bit system to Professional and run XP Mode virtual machine?  How transparently will it run?  Will only run when opening the 32 bit software?  Any other thoughts?

Thanks for your help!
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Sorry for the delay.  Just got back in town from my cousins funeral.

I agree, my client had already bought the computer.

PCMover looks very helpful.  Is there any reason I couldn't use the Home edition rather than the Pro?  The only actiion I may need in Professional is "Restore old PC Image to new Operating System...or maybe I will not use that feature at all.  Suggestion?

Thanks!
The most significant feature PC Mover Pro provides over Home is the ability to choose which applications to move => Home just moves everything (with no choice on your part).

I think that feature alone is worth the price difference.

Note that with either version, since you'll be "moving" from the same PC to itself, you'll have to first do the "move" with an external drive as the transition media; then reload the system; and finally complete the "move" back to the system (with the new OS).
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That's my understanding as well.

I figured that since it is a new system, with very little baggage, it wouldn't be as necessary to choose which applications move over or not.

With that being said, it doesn't seem that I would be using the feature of moving, or restoring, an old PC Image to a new Operating System.  Correct?

Thanks for taking the time with me...this looks like a very useful program that I can see using in the future.  Saving me a ton of time and my clients money.
It certainly seems like it will do what you want -- the only version I've ever used in the Pro version, so I can't confirm whether or not there's anything else "missing" that might be useful.   I HAVE read some negative reviews of the Home version -- but as I recall they were all complaining about the lack of selectivity (which is clearly stated in the comparison chart).
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I'm trying...decided on the home version.  Their servers must be down, get this message

Error:

We're sorry, but we are experiencing technical difficulties, and are unable to process your registration at this time. The system will be available shortly. Thank you for your patience.


Have not received my email with registration information yet so I can't download.  I'll keep you posted.
Off topic.  Someone here is a "Justified" fan?  Me too.
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Thank you everyone...especially garycase.  Thanks for sticking with me and answering all my questions!  Installed a copy of Win 7 Professional 32 bit, used PC Mover to move all the software that came with the new machine and everything seems to be working fine...did not have to use the Virtual PC from Professional, the 32 bit did the trick in running the software.