Microsoft has updated its virtualization solution for Windows 7 to the release candidate (RC) milestone:

Windows Virtual PC provides the capability to run multiple Windows environments such as Windows XP Mode from your Windows 7 desktop. To download Windows Virtual PC and the Windows XP Mode environment, please follow the steps below. For information on how to set up Windows Virtual PC and Windows XP Mode, check out Running Windows Virtual PC with Windows XP Mode in the Documentation section.

Windows XP Mode will only run on Windows 7 Professional and Windows 7 Ultimate editions and requires a virtualization engine, such as Windows Virtual PC.

Note: Beta to RC upgrade is not supported. You need to uninstall the Beta version of Windows Virtual PC and Windows XP Mode before installing the RC bits.

Update: Neowin notes that the RC version supports Jump List integration and other new features, which is pretty cool. Thanks to Halil M. for the link.