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As our Lenovo Thinkpad X60 includes Intel's VT-enabled 1.83 Ghz Core Duo L2500 mobile (low power; 15w) processor, we were somewhat confounded by the fact that the checkbox on this option was greyed-out when perhaps it shouldn't have been. Our guess is that when this feature is working, the virtual machines should expect to pick up some additional performance benefit through the host processor's hardware assistance. We're checking with Microsoft to see what's up with this option.
For David Berlind's write-up on The Virtual PC 2007 User Interface and for an update on whether Microsoft has a response to this problem, see his post in ZDNet's TestBed blog.