Right click on exe file of the program, go to properties. Click on 'compatibility' tab and select 'xp mode'.
Click ok. Now you can run program in 'xp mode'.
I think he is talking about the visualization through Windows 7 to literally emulate Windows 7 (via Virtual PC). Unfortunately, your computer must SUPPORT it (not the OS, the hardware) before you can use it.
What program isn't installing?
I've never heard of that, nor can I find relivent information on system requirements. So, here are your options.
1. Give the "Run as" option a try again, play around with the settings. No harm done.
2. If your computer can handle if, give a virtual machine a try. As hunnyhiteshseth said, try VirtualBox or VirtualPC (both free) and use your Windows XP disk to install on a Virtual Machine.
3. Find an older computer and put Windows XP on it and use it for that software.
4. Downgrade your computer to Windows XP.
Honestly, I don't understand why the program isn't working. By any chance do you know of it's workings on Windows Vista? If it works on Vista then it should run on Windows 7.
It's odd that the program runs incorrectly even when in "Compatibility mode." I'm not sure, maybe contact whoever makes the program.
If you have Windows 7 Professional (or above so Ultimate/Enterprise) then you can use the "included" virtual XP mode. Its not really included since you have to download and install it yourself. Just google windows 7 XP mode and you should find the link from MS.
Please make sure you CPU supports VT though.
It is just a virtual XP computer within your Windows 7. You install the application within the XP machine and run it in there too. Unless your computer is powerful (RAM is very important) the application wont run very well. Gaming is pretty much out but other stuff should be fine.