If you are using Windows 7 or earlier, you can install the Virtual PC setup and the Rollup update normally without any issues. The workarounds below are only required for Windows 8, 8.1, and 10 (32-Bit).
This workaround is not possible for Windows 10 64-Bit and later. You cannot use Virtual PC for Windows 10 64-Bit and Windows 11.
While Microsoft's built-in Hyper-V is great for modern systems, it cannot properly virtualize legacy operating systems older than Windows XP. You can still run Microsoft Virtual PC 2007 on Windows 8, 8.1, and Windows 10 (32-bit) with a few simple tweaks.
Download Microsoft Virtual PC 2007 SP1 (v6.0.192) above (do NOT click Rollup)
Bypass Windows Blocking: Windows will try to block the installer. Rename the setup file to any other name (e.g., VPC_Setup.exe) before launching it.
Open the installation folder:
32-bit: C:\Program Files\Microsoft Virtual PC
64-bit: C:\Program Files (x86)\Microsoft Virtual PC
Rename the main executable file Virtual PC.exe to something else (e.g., VPC.exe) to bypass the OS launch block. But most case I recommended to do just remove spaces like VirtualPC.exe.
Fix the shortcut path with your renamed executable file too.
Windows 8 (32-Bit): Ready to go. You can launch and use Virtual PC immediately after completing steps 1 & 2.
Windows 8 (64-bit) / 8.1 (32-Bit and 64-Bit) / 10 (32-Bit) : Driver update required. Starting a virtual machine will crash with a vmm.sys BSOD unless updated.
Download the updated vmm.sys driver file (sourced from the Windows Phone SDK 7.1.1).
Navigate to C:\Windows\System32\drivers.
Replace the existing vmm.sys with the downloaded version with appropricate architecture. (Be sure to use the 32-bit or 64-bit version matching your OS system architecture).
Reboot your PC. Virtual PC will now run smoothly without crashing.
Security Hotfixes Warning: Do NOT install security hotfix KB969856 on 64-bit Windows 8+ systems. It will overwrite your new vmm.sys with an older driver and break Virtual PC again.
Mouse Cursor Stuttering: If your mouse stutters inside older VMs (like Windows 3.1):
Open regedit.exe and navigate to: HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\AppCompatFlags\Layers
Create a String Value named with the full path to your renamed Virtual PC executable (e.g., C:\Program Files (x86)\Microsoft Virtual PC\VPC.exe).
Set its value data to: NoDTToDITMouseBatch
Open Command Prompt as Administrator and run: Rundll32 apphelp.dll,ShimFlushCache
Restart your computer.
I don't know if it only happens for me, but as of experience with NVIDIA GeForce GTX 1660 Super on Windows 8.1, It causes freezing system and causes nvlddmkm.sys is crashing and recovering while you have Virtual PC is opened.
I also don't know if it only happens for me, but as of experience with Intel 10th Gen with Windows 7, it caused BSOD with 0x000000FC (ATTEMPTED_EXECUTE_OF_NOEXECUTE_MEMORY).
Avoid applying the optional Rollup update on Windows 8.1. It breaks virtual network adapter bindings and makes uninstallation difficult. Stick to version 6.0.192 for the best stability.
Otherwise, you can manually update rollup using above Rollup for 8.1 and later links.