Microsoft said Tuesday that it has issued an official Release Candidate for software that allows users of the forthcoming Windows 7 operating system to run a virtual edition of Windows XP from inside Win7.

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Windows XP Mode, Release Candidate, is available as a download from Microsoft's Windows Web site. The software requires a PC equipped with virtualization capabilities, such as Intel's Virtualization Technology or AMD-V, to operate properly.

Microsoft added Windows XP Mode to Windows 7 in response to user concerns that older applications will not run on Windows 7. The concerns were sparked by warnings from Redmond that Windows 7 is built on the same kernel as Vista. Many business applications built for XP proved incompatible with Vista—a fact that doomed Vista in the business market.

Microsoft is hoping that the presence of Windows XP Mode will help Windows 7 avoid a similar fate, particularly among smaller companies that may lack the budget to rewrite their apps or buy new ones.

"Windows XP Mode is specially designed for small and medium-sized businesses to help ease the migration process to Windows 7 by providing additional compatibility for their older productivity applications," said Brandon LeBlanc, Microsoft's in-house Windows blogger, in a post Tuesday.

LeBlanc noted that Windows XP Release Candidate will work with both the RC and RTM (Release To Manufacturing) versions of Windows 7.

Windows 7 RTM is available to Microsoft's Software Assurance subscribers on August 7. Volume licensing customers without Software Assurance can get the OS on Sept. 1. Windows 7 ships to the general public on Oct. 22nd.

Microsoft has its work cut out pitching Windows 7 to the corporate market, despite Windows XP Mode. Only 16% of businesses surveyed last month by InformationWeek said they plan to adopt Windows 7 within a year of its debut. 37% of those polled said they have no plans at all for Windows 7—at least not in the near term.