VMWare: This host doesn't support VT. Can not play 64-bit VM due to lack of VT flag

I have an Intel E7300 Core2 Duo processor with 2.66GHz speed. I need to run a 64-bit WinXP SP2 VMWare image. My host operating system is Win 7. So I just installed the VMPlayer from www.vmware.com.

The problem is when I run the VM image it says This host doesn't support VT. If I continue I see Windows shows an error message saying

Attempting to load an x64 operating system, however this CPU is not compatible with x64 mode.

My question is how do I run this VM without buying a new processor? Any other tools or software?

Intel Core 2 Duo E7300 doesn't have Virtualization Technology (VT) support. Intel's website has a whole list of which processors support VT-x here.

So you cannot run 64-bit operating systems in a virtual environment. You will have to use a different processor which supports VT-x (or AMD-V in case of AMD processors).

Apparently VMware and VirtualBox don't support 64-bit guests without VT (at least, as of Aug 2009)

Since your CPU does not support VT (as Om Nom Nom pointed out), you'll have to either upgrade your CPU or switch to a virtualization product that does support 64-bit VMs without VT (Xen was suggested in the Serverfault question, but I don't think you can install Xen on a Windows host).