here's my system specs

Gigabyte M59SLI-S5

NVIDA SPP190 (C51XE)

nFORCE 590 SLI

REV A2

BIOS Version F8

CPU Type DualCore AMD Athlon 64 X2 Black Edition, 3215 MHz (16 x 201) 6400+

Module Name 4GB Patriot Memory PDC22G6400LLK

here's my error message in VMware 6.5

Cannot Start Windows Virtual PC Host Process. Check the System event log for more details.

Windows Virtual PC requires Hardware-assisted virtualization. There is no hardware-assisted virtualization support in the system.

i checked my CPU for HAV support its says yes

used Hardware-assisted virtualization (HAV) detection Tool

Securable

i also went into bios and enabled Virtualization

Whats wrong?

You are running Win7 in VMWare and want to run XP Mode for Windows inside this VM? Not going to happen. VMWare does not emulate the HW virtualization required by Virtual PC. At least v6.5 did not.

Version 7 was release earlier this week, it may allow this, but I have not yet received my upgrade license so I haven't checked it out. Version 7 s supposed to be fully Windows 7 compatible.

the title looks like you want ms virtual pc but your post is about vmware :

the xp mode from there is free :] http://www.microsoft.com/windows/virtual-pc/

For sure you can't do that in vmware!