Okay, I read the archives online, (sorry for late reply, wasn't
subscribed, hope this helps), here's what I know:

1). Yes, as mentioned XP Mode is for commercial Win7 users only (Pro,
Enterprise, Ultimate). Yes, you can transparently share files (I
think?) via RDP. It's just XP Pro SP3 inside Windows Virtual PC. It's
double the space and RAM requirements, though, of normal Win7. It's a
free (but optional) download for such users, not home users. (Sorry, I
haven't tried it.)


http://www.microsoft.com/windows/virtual-pc/support/faq.aspx

Why is Windows XP Mode not available in Windows 7 Home Premium?

Windows XP Mode is best suited for older business and productivity
applications such as accounting, inventory, and similar applications.
Windows XP Mode is not aimed at consumers because many consumer
applications require extensive use of hardware interfaces, such as 3-D
graphics, audio, and TV tuners, that do not work well under
virtualization today.


2). QEMU is free/libre (GPL). Seems that 0.14 is due any day now. For
older versions (prebuilt Win32 binaries, not only sources), try here:

http://lassauge.free.fr/qemu/
http://www.h7.dion.ne.jp/~qemu-win/

3). VirtualBox does have an OSE version, and I *think* gNewSense
actually bothered to recompile it for Windows. It's not the latest
version(s), only 2.2.0 and 3.0.4, but it should (mostly) work if
you're worried about licenses (though it misses USB support, I think):

http://sourceforge.net/projects/vboxwin32/files/vboxwin32/

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