XP Mode has been hailed within the Microsoft channel as a potentially effective carrot for enticing small businesses to upgrade to Windows 7, but reports of glitches in XP Mode suggest that it might not be easy to use.

The CRN Test Center recently ran into problems after installing XP Mode and Virtual PC on a machine with a verified AMD-V virtualization processor. Although the Test Center found that the issue can be solved by upgrading the BIOS to the latest version, small businesses might not have the time or resources to find their way out of the mess, according to some solution providers.

Frank Ballatore, president and CEO of Ridgefield, Conn.-based New England Computer Group, has been using XP Mode as a selling point in conversations with customers that were scared off by the application compatibility that dogged Windows Vista. While Ballatore doesn't expect XP Mode glitches to impact many customers, he acknowledges that they could have an impact on some.

Full story: CRN