Well, my Win 7 Ultimate box finally arrived tonight, so I gave this a spin. Installed the WinXP mode from the MS website and all that jazz. Installed Vmate on the virtual XP PC, and just copied over the download edition of Crescendo from my old Win 7 RC drive to the XP’s virtual one. After taking a wild guess as to what my Vmate login details were, it crashed with an error message. Tried again, and the game started.
The sound and music plays normally, voices work, nothing seems out of the ordinary. The only thing I noticed was that nothing in the virtual machine seems to be capable of running in full screen mode even if the virtual PC itself does. Trying to run the game full screen would just place the window up in the top left corner and remove the standard Windows border around it. I got the same result when simply trying to maximise anything at all, like the Windows Explorer window. No idea if it is a limitation/incompatibility of my hardware or the XP mode itself.
In short, it does seem like the XP mode will allow the VMate protected games to play. However, you need either the Professional or Ultimate editions to be able/allowed to use XP mode, the standard Home Premium edition cannot, so a different solution is hopefully found, if only moving the games over to Software Defender.
Edit
I found out why it crashed the first time; I tried running the copy of the game that was still on my Win 7 drive, which apparently doesn’t work. The game has to reside on the Virtual XP’s harddrive. The second time I ran the correct copy, hence why it didn’t crash again. It doesn’t need to be actually installed within the XP environment though, simply copying over the already installed game to the virtual harddrive is enough.