Virtual PC 2007 was released only for the Windows platform, with public beta testing beginning October 11, 2006, and production release on February 19, 2007. It added support for hardware virtualization, viewing virtual machines on multiple monitors and support for Windows Vista as both host and guest. (The Windows Aero interface is disabled on Windows Vista guests due to limitations of the emulated video hardware; however, Aero effects can be rendered by connecting to the guest via Remote Desktop Services from an Aero-enabled Windows Vista host, provided that the guest is running Windows Vista Business or a higher edition.)
On May 15, 2008, Microsoft released Virtual PC 2007 Service Pack 1, which added support for both Windows XP SP3 and Windows Vista SP1 as guest and host OSes, as well as Windows Server 2008 Standard as a guest OS. A hotfix rollup for Virtual PC 2007 SP1, released February 20, 2009, solved networking issues and enhanced the maximum screen resolution to 2048×1920 (32-bit), enabling 16:9 resolutions such as 1920×1080. A security update was released on July 14, 2009 to address an elevation of privilege vulnerability in guest operating systems.