Yea, I can see how it's misleading, there was a little snippet about it on Engadget:
Virtualized Windows XP coming to Windows 7 Professional and Ultimate users
However I doubt you'll ever need to use XPM (if you get Ultimate/Business) as anything that runs in Vista, and a lot of stuff that doesn't run in Vista, runs on Windows 7 just fine or by right clicking, properties, and setting compatibility mode to XP SP3. Sometimes Win7 will also do this automatically, which is rather neat.
I've been using Windows 7 here at work and haven't had a single issue so far, I don't really use outdated software though as it's a web design firm. Then again, if someone is upgrading to a new OS but wants to stay with really old, legacy, programs.. then he/she might as well just stay with XP, rather seems to defeat the point of upgrading to a new OS lol :p
Hehe, makes it easier on you and me :p