Virtual PC cannot run in Windows 7

Hello
I'm working on a new desktop with Windows 7 Home with 4 GB Ram and 320 GB HDD installed. I'm using a desktop application that apparently only working properly in Windows XP so I was told to try and use Virtual PC. The problem is Virtual PC cannot work properly in Windows 7 Home.
I have tried to reinstall Virtual PC but still failed. I know for a fact my colleague use Windows 7 with Virtual PC so he can run the desktop application. What did I do wrong with the installation of Virtual PC. Is there any additional steps for installation or perhaps any workaround for the problem ?
Any suggestions and ideas are really appreciated.
Regards,
Jeff
