Yes.. but the default Virtual Machine sets system memory for XP at 256 MB.. you must reset Virtual XP (right clicking and selecting Settings) berofe launching it to approx 1 to 2 GB for games to work correctly...
As for Windows 7 RC 1, it is very stable.. I have been using Windows 7 since March and the RC 1 for the last 2 weeks.. very stable and much improved over Vista..
as for Mod Chooser and Mods.. as I stated, you can put in a TNG mod if you choose to do so, however the Mod Chooser does not save models, so if a Mod installs and over-wrights models and the Model.siz file, then that could possibly introduce the modes size cheat due to different model sizes between mods.. wo that would be the only file you would have to swap manyally after using Mod Chooser.
I will be testing out Windows 7 and Virtual XP for Orion Pirates tonight.. will post back results. Virtual Xp integrates into Vista for hardware, as such, drivers are not needed like in previous versions of Virtual Machine and IIRC it should not limit video card memory to 8 MB.. I was running 32 bit color with all settings on high last night in Virtual XP.. so I think this issue is solved.. I just need to test Netowrking on Virtual Machine, but once that is done.. I think we should have a winner.