I'm running Windows 7 Ultimate edition and the latest versions of Virtual PC and Windows XP Mode available here.
Every time I attempt to start Windows XP Mode, the setup starts, I accept the licence agreement, leave the installation folder as default, enter my password, select either of the two protection options, then click start setup. All this does is create a vmcx file called Windows XP Mode 1 in C:\Users\My Username\Virtual Machines.
This VM does nothing and its machine status stays as Powered down.
I've tried creating a new virtual machine, but the behaviour repeats and the machine never powers up.
I've tried uninstalling and reinstalling Virtual PC from the Windows updates, as well as doing the same for the Windows XP Mode install. I am a full Administration on the machine and UAC is off.
Does anyone have any idea why I cannot launch any virtual machines?
EDIT: Also, I have hardware virtualization and it's turned on.