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Here is a quick tip to install and run applications on Windows XP without affecting the registry. While this is not strictly comparable to Windows Vista’s inbuilt Sandbox, Registry & File System Virtualization feature, it is a quick method to run programs such as IE on XP in restricted mode, preventing malware or viirus from affecting the registry or drive.
To use RunAs, right click the program’s executable or shortcut and select “Run As”. If the option is not visible, press Shift and then click on the icon. Then select “current user” and check the option “Protect my computer and data from unauthorized program activity” box is ticked.

This option has the following effect :
+ Group membership: If you were logged in as a member of Administrators, Power Users, or certain powerful domain groups, the app runs without the benefit of those group memberships.
+ Registry: The app has read-only access to the registry, including HKEY_CURRENT_USER and HKEY_LOCAL_MACHINE. The app has no access to HKCU\Software\Policies.
+ File system (NTFS): The app cannot access the user’s profile directory at all. That includes “My Documents”, “Temporary Internet Files”, “Cookies”, etc.

+ Privileges: The app has no system-wide privileges other than “Bypass traverse checking”.
This solution, though simple, breaks most applications from running. Therefore, users can think of using a third party software such as Returnil Virtual System 2007 which can clone a copy of your System Partition into the memory and create a file based Virtual Disk Partition where you can save documents, data, files & install programs, software and applications without affecting the host system (similiar to VMWare or Virtual PC)