Unable to upgrade Integration Components after installing Service Pack 1

After you install Windows 7 SP1, you may receive the message that the XP Mode needs to be Upgraded ( Upgrading Virtual PC Integration Components) when you open the XP Mode.

Sometimes, the IC upgrade fails and displays "Setup Interrupted".

Resolution:

You can examine the setupact.log and vmguestsetup.log. A common issue is the installation failure is related to wdf01000.sys and wdfldr.sys.

Please try the below steps:

1. Unistall Virtual PC Components.
2. Remove the device that is unrecogonized from the device manager
3. Rename the following 2 files
C:\WINDOWS\system32\DRIVERS\wdf01000.sys and
C:\WINDOWS\system32\DRIVERS\wdfldr.sys
4. Restart the system. Hardware wizard comes up at reboot. Some inf file is left over, so it recognizes it as the bus thing, but needs a file in the Program files\Virtual PC ... folder (which is gone). Dismiss the dialog.
5. Install the Integration components.
6. When the hardware wizard comes, select to manully to install, enter the path in the first option - C:\Program Files\Virtual PC Integration Components and click next. it should recogonize the unrecogonized device
7. Restart and enable the Integration features