You can add USB devices and seamlessly access the drives on the host Windows 7 system.
XP-mode enables you to run Windows XP from within Windows 7. XP Mode is a complete, licensed copy of Windows XP with Service Pack 3 contained in a virtual hard disk (VHD) that runs under Windows Virtual PC. The vast masses of users who have held on to Windows XP are particularly vulnerable to this issue which is why Microsoft created XP Mode virtualization to ease the pain of transition. As good as the OS roll out is going, there are still legacy devices out there that don't have drivers and software updates to work with Windows 7. Windows 7 is doing much better out of the gate than Windows Vista did.
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