When an application requests information from HKLM\Software, Windows looks first in the virtualized key if it exists . Therefore, if a value exists in both the VirtualStore hive and in HKLM, the application sees only the one in VirtualStore.
Note that, because the virtualized data is stored in a per-user section of the registry, settings made by one user do not affect other users. Running the same application in Windows XP, which doesn't use virtualization and therefore looks only at the actual HKLM hive, presents all users with the same settings. This can lead to confusion by users who are accustomed to sharing an application in Windows XP and find that it works differently in Windows 7
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