I never really understood why that requirement was in there in the first place. I'd been running virtual pc 2007 on two very similarly specced machines, one with hw virtualization, the other without. I don't think I ever noticed any differences.
It has to do with some of the integration features, like the virtual USB and seamless windows. I imagine they found that the help offered by AMD-V and Intel-VT weren't enough to warrant it being a requirement.
Either that, or it wasn't enough of a boost for them to be pissing off a huge number of enterprise customers with non-VT systems.
Maybe the enterprise customers let Microsoft know that any XP emulation, even a poor one, is better than none at all. Chin up though, Microsoft DID buy VirtualPC back in the day so it's not like they don't know how to build an emulator.
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Either that, or it wasn't enough of a boost for them to be pissing off a huge number of enterprise customers with non-VT systems.
-drasnor