Microsoft needs a Virtual Server for backward compatibility for it's NGSCB ( Next Generation Secure Computing Base ) DRM ( Denial of Rights Mechanism ) platform.

Just as Microsoft's XP backward Win9x compatability opens up many locally exploitable API to gain SystemLocal privilege access, to the point where many programs need Adminstrator privilege to run, existing XP and win2k software would open up too many opportunities for helpfull hacker to bypass Microsoft's NGSCB DRM mechanisms.

Microsofts all too obvious solution is to provide a "Virtual" PC mode, running a modified XP and WinME, with the NGSCB providing virtual filesystems and hardware access. All, access of course, with the NGSCB DRM scanning and control.

Where do you want to go tomorrow?