I have noticed that when I select XP mode with my Thinkpad order with 64-bit Windows 7, I get charged something like $14 more. But XP mode seems to be free to download from the Microsoft site?

Is there any reason I should pay for it through Lenovo instead of downloading it for free from Microsoft?

Your paying the extra $14 for the convenience of having them install it. If it were me, I'd save the $14 and do it myself with the free download.

Ah - thanks for the confirmation Dale.
The $14 can go towards the fingerprint reader LOL.
(I am still amazed sometime we are talking about such small numbers these days on computer stuff.)

The installation of XP mode isn't that difficult to do and goes fairly quick. If you decide to update XP mode with the latest security patches then that can be a little time consuming. I had a copy of my desktop until I decided to bump the processor speed up. Windows 7 adjusted to the overclock without problems, but XP mode didn't like the change and deactivated. Wound up uninstalling it in the end. Eventually when I am done tweaking the processor I will try it again.

XP mode also requires a license key.

I don't know if this is a location thing(AUS/U.S) or Tpad model, but when configuring a W520 from the U.S. site(lenovo.com), there is no added charge for selecting XP mode.

I'd rather have it come pre-installed, for convenience and support reasons. $14 ain't much, and if you have problems, you can go back to Lenovo for support.

Yes, XP Mode does require a license key, but it is included with the download. If you install XP Mode in Windows Virtual PC then the license information and product activation will be done automatically during the install.

i thought the XP mode cost was due to the slightly upgraded ram.

Because Microsoft charges for XP mode.

Volume licenses for XP mode cost OEMs more money -- Microsoft's trying to phase out XP, hence the price premium.

1) MSFT charges for XP Mode but the price is embedded in the relevant OS. Whether you choose to use it or not its a feature of W7.
2) Download it yourself. If you are downloading songs etc. or installing stuff like Firefox then I don't see why you would be apprehensive given MSFT always makes things consumer friendly.
3) RAM has absolutely nothing to do with the price adjustment. Nowhere in the configuation page would Lenovo increase your RAM cost because you choose XP Mode. But you probably should consider more RAM if you intend to run XP Mode and do lots of things with your host OS at the same time.
4) Would you rather use VMWare Player or VirtualBox and pay for an XP license or take the one MSFT gives you to run in VirtualPC?

Do they really? I understood that the XP license is included in the license of Win7 Professional/Enterprise/Ultimate.

It is, at least for the end-user. But it was my understanding that Microsoft charged OEM's slightly more for the rights to sell pre-downgraded computers (as part of their push to retire XP.)

That's very different from XP mode though. "Downgrading" means actually installing XP instead of Window 7, not running XP in a virtual machine. (XP mode is basically MS Virtual PC bundled with a pre-activated copy of Windows XP plus some integration features.)

Yikes. I totally misread the post I was responding to.

Disregard my comment.

I have noticed that when I select XP mode with my Thinkpad order with 64-bit Windows 7, I get charged something like $14 more. But XP mode seems to be free to download from the Microsoft site? Is there any reason I should pay for it through Lenovo instead of downloading it for free from Microsoft?

I would just wait and download the free version. They'll both work the same.