Certain embodiments of the present invention are directed to a system for and method of providing seamless software compatibility by using virtual machines to provide an improved, more seamless method of user interaction with one or more virtual machines (VMs) that are resident on a host computer system. Several embodiments of the present invention provide a means in the host environment for directly invoking one or more guest operating system (OS) applications or files and displaying them in the host environment, rather than in a separate VM window. Furthermore, each embodiment of the present invention allows the possibility of multiple applications on multiple OSs (i.e., legacy or modem OSs), respectively, to run simultaneously and with the appearance of running seamlessly in the host environment.