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Source: Microsoft Support
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When you upgrade from Windows XP to Vista with the Application Virtualization client installed you may see the following report:
Potential issues were detected with installed applications/devices
These issues do not prevent your upgrade, but some applications and/or devices might not work once your upgrade completes.
* Microsoft Application Virtualization
As part of the process of upgrading Windows XP to Windows Vista, the Setup program automatically runs a compatibility check against the existing hardware and software. If a problem is found, a compatibility report is shown.
We recommend that the Microsoft Application Virtualization Client be uninstalled prior to upgrading the Operating System. Reinstall the client once the upgrade process has been completed.
How to upgrade from Windows XP to Windows Vista by using the upgrade version of Windows Vista
Note Windows Vista Application Compatibility Updates are cumulative. Each update contains all the improvements that were included in previous application compatibility updates. For a complete list of the applications that have been addressed by application compatibility updates, see the following Microsoft Knowledge Base article:
953960 How to obtain the latest Windows Vista Application Compatibility Update and the applications that are included in Windows Vista Application Compatibility Update
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