The Virtualized Windows XP Mode Add-On (Windows XP Mode (XPM) will be included. http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9132119&intsrc=news_ts_head
Basically, they are including a free licensed copy of Windows XP SP3 within Windows 7, that will run as a virtual machine and the applications running in this ‘compatibility space’ will be ‘published’ to the desktop of the host (Windows 7) … Only to those purchasing Pro, Ultimate and Enterprise editions.
http://www.winsupersite.com/win7/xp_mode_pre_shots.asp
Saweet… but even more reason to blister the thing full of RAM 🙂