I am currently using VMWare Workstation 6.5 to test the Windows 7 RC build 7100, and am particularly interested in evaluating the new "XP Mode" feature. However, since one of the prerequisites is hardware virtualization support, I am afraid this might not be possible under the isolation of a guest OS. Is there a configuration option in VMWare to allow this to work?
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The Win7 XP Mode only works if your CPU supports "VT" (or AMD's equivalent).
It's unlikely that VMWare Workstation will emulate or otherwise expose the VT feature to guest O/Ses running under virtualisation, such that the guest O/S's own virtualisation host will work.

Alnitak
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That's my understanding too. – Chopper3 May 09 '09 at 11:09
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Thanks. I was hoping there might be a way to "bypass" the guest isolation of the VT feature somehow -- similar to how you can choose to use a real hard drive partition directly instead of a virtual drive within the VM -- but it appears you are correct. – Tim Lara May 09 '09 at 19:18
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I'm using virtual box and it works fine combined with my hardware virtualisation. Not sure about VMWare, but I should think it works there also, VMWare are generally on top of the latest virtualisation stuff.

Adam Gibbins
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the OP is asking about running a virtual O/S inside another virtual O/S. – Alnitak May 09 '09 at 11:37