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XP mode integration enabled but doesn't work properly

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Installation of Windows XP mode in 32-bit Windows 7 Ultimate goes smoothly but integration only partially works, even though enabled. For example, I can access all drives from XP and my multifunction Logitech mouse driver obviously works fine, but I can't drag objects between XP and Win 7 windows and, more importantly, programs installed in XP don't appear in the Win 7 start menu. There is no sub-folder under Virtual PC for apps.

A little background: My computer is a Dell Latitude D630. Before attempting to install XP mode, I ran the Hardware-Assisted Virtualization Detection Tool from Microsoft which told me that acceleration needs to be enabled in the system BIOS, even though it is enabled. To be certain, I tried to install KB977206 which is supposed to eliminate the need for acceleration but I got the error message that its not applicable to my computer. In spite of all that, as I say, installation went smoothly and I'm able to install programs run programs in XP mode, just can't access them from Win 7. I'm inclined to doubt that the acceleration issue has anything to do with that but I could be wrong.

If I can't find out what's going on and how to fix it, can anyone suggest a way to get those XP apps into my Win 7 start menu?

Edit: I've stumbled onto the solution. In order for shortcuts to XP apps to "auto-publish" to the Win 7 start menu, the programs must install into the XP "All Users" profile. It turns out that not all do that and mine didn't. If you move or copy the shortcuts from within XP mode to the start folder in All Users, they will appear in the Win 7 start menu in a newly created apps folder. I still can't drag objects between windows but I'm not too concerned about that.

Edited by KRH

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