Windows 7 setup XP mode for all users
Install XP mode on windows 7
Create your image exactly how you want everyone to see it when they open.
The actual image file (.VHD) will be in the following
directory:
C:\Users\USER_NAME\AppData\Local\Microsoft\Windows Virtual PC\Virtual
Machines
create directory C:\Public-VM
copy C:\Users\USER_NAME\AppData\Local\Microsoft\Windows Virtual PC\Virtual Machines\Windows XP Mode.vhd to C:\Public-VM\
edit security on folder C:\Public-VM\ and remove Authenticated users write and delete permission. This will block users modifying the VM and one user seeing other users data.
Log on the Win 7 machine as another user
Click on Start > All Programs >Windows Virtual PC and launch Windows Virtual PC (NOT XM Mode!).
Create a new virtual pc and select "Use an existing virtual hard disk" and browse to the folder C:\Public-VM\Windows XP Mode.vhd and enable undo disk and hit "Create".
Every user can log on to the same VM as administrator but could not see other users data.
each user can reset the VM by removing the undo disk in the setting.
You can copy the VHD across multiple machines. Enable NAT for network connection. this will prevent VM name interfering with other copies.