Windows XP Mode and Windows Virtual PC, available ONLY on Windows 7 Professional and Windows 7 Ultimate, allow you to run multiple Windows environments, such as Windows XP Mode, from your Windows 7 desktop. Microsoft has added several new features to Windows Virtual PC to make it easy to use and to help you run many older Windows XP applications in Windows 7: One click launch of Windows XP Mode applications, USB support, folder integration between host and guest, publish and launch applications installed... More info »
Virtual PC and "Windows XP Mode + Windows Virtual PC" are very different VM-apps "Windows XP Mode + Windows Virtual PC" runs only at Windows 7 prof. and higher versions and has USB-Support, Virtual PC 2007 runs also on Vista and has no USB-support. There are many differences between the 2 VM-apps, so they cannot be merged. A list of the main differences (not all) you see on: http://www.microsoft.com/windows/virtual-pc/features/compare.aspx
Virtual PC and "Windows XP Mode + Windows Virtual PC" is the same and should be merged.