does Windows 7 come with something like Virtual PC built in?

"it supports .vhd files by default, take a look here
http://www.hanselman.com/blog/LessVirtualMoreMachineWindows7AndTheMagicOfBootToVHD.aspx

and a video demonstration here :http://www.microsoft.com/downloads/details.aspx?familyid=80EDE31D-3509-407B-A896-0BEEA8705589&displaylang=en"

"No

But you have few options

WinXP mode

licensed copy of Windows XP SP3
based on Virtual PC
application runs via Terminal Services
not included at installation disk

MS Virtual PC

free

VMware Workstation - my recommendation

around 190 USD
2 screen support
great performance
But you can using VirtualPC (free) or other VM software."

You need to download the XP Mode RC.

"Windows 7 will come with a built-in virtualization of Windows XP called XP Mode. This should allow you to run some programs which may not work properly with newer versions of Windows.

As MicTech has eluded to, you can also download VirtualPC (or any other virtualization software) as well to give you more options."