Error: Virtual Windows XP could not be restored because hardware-assisted virtualization is disabled

If you’re new here, you may want to subscribe to Windows Reference RSS feed Thanks for visiting!In Windows 7 RC, when you try to start an application in the Virtual Windows XP (XP Mode) you may be faced with the error:
“Virtual Windows XP could not be restored because hardware-assisted virtualization is disabled”

Hyper-V: 64-bit Hypervisor based Virtualization in Windows Server 2008

Hyper-V is a 64-bit only Virtualization Technology in Windows Server 2008. Hyper-V is a 64-bit native hypervisor based Virtualization and requires processors that support virtualization. Needless to say it is not supported on the 32-bit version of Windows Server 2008.

Hyper-V – Install & enable on Windows Server 2008 (64-bit)

If you have installed your Windows Server 2008 from a recent media download or shipped by microsoft then chances are that you already have the Hyper-V Role installed on your system but not enabled yet.