http://www.microsoft.com/oem/en/licensing/sblicensing/pages/downgrade_rights.aspx

According to the information there, you can't downgrade from 7 Home at all, nor does it touch on cross-architecture downgrades. So, while your ideal option would be to go to 7 Pro to get XP Mode, I'd consider the costs involved in going from Home to Pro to be punitively expensive. You'd also have to be certain that your laptop's processor supports virtualization extensions in order to use XP Mode (IIRC).

VirtualBox + valid XP license is the cheapest method by far, and the one I currently use. It will run whether or not you have a CPU with virtualization enhancements, although your performance will definitely be affected.

On 12/12/2011 1:00 PM, pctech-request@xxxxxxxxxxxx wrote:
date: Mon, 12 Dec 2011 10:36:18 -0500
from: Jeff Crosby<jlcrosby@xxxxxxxxxxxxxxxx>
subject: [PCTECH] Windows OS downgrade - how does it work?

All,

We had a laptop stolen Friday and need to get a replacement. The Windows
app in use is 16-bit (yea, I know) so I need Windows 32-bit.

Office Depot has a tremendous price this week only on Lenovo G570
(4334-5VU0) which is Win 7 Home Premium 64-bit. So it won't work as is.
Since it's Home Premium, XP mode is out.

Is it true that I would have downgrade license to Win 7 32-bit Home
Premium? If so, how does that work? Do I need to get physical media
somewhere?

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