If the driver won't work -- are you running 32-bit Win7 or 64-bit Win7? If not sure, right-click on "Computer" and click "properties". You will see "system type" displayed in the window.

If you are 64-bit you're SOL. No form of virtualization is going to solve the driver problem - Not VMware nor Windows Hyper-V unless the device has drivers compatible with the virtual platform (Virtual platforms are 64-bit). If 32-bit it's worth trying other things to make it work.

BTW I don't recommend you downgrade to XP, especially if "bootleg". You will be illegal, won't be able to validate to receive updates, and it will be insecure and then you will complain about it when you get a virus (but it will be your own fault). It is end-of-life http://windows.microsoft.com/en-US/windows/help/end-support -- not the best way to start with a new computer.

Maybe it's time for a new phone. XP was introduced in 2001... 10 year old technology can't be expected to last forever.