We’re getting programs confused here

Windows Compatibility Mode is on all the later Windows and works for a lot of programs but not all.

XP Mode is a separate download that is available for Windows 7 Pro and above, (There are also work around to get it to work on Windows 8) which is a full version of Windows XP which runs within Windows 7 in a virtual environment. (You have 2 different operating systems running at the same time) and they can interact with each other, (But they are separate, so XP Mode will need the same updates and protection as all XP installations) and as yet I have not come across an XP program that does not work in XP Mode.

If you have a full copy of Windows XP you can use a virtual machine to run it within Windows just like XP mode, but it requires a lot more setup from the user, this is a pretty good one VMware and it’s free. (It will also run on standard Windows)

Hope this helps

Bill