Well, it's Win7 PROFESSIONAL you need for XP Mode, not Home Premium. So, if you were told you need Home Premium, then you were told wrong I'm afraid.
Though I do question the wisdom of running Win7 on that system. I don't really think you're going to be happy with Win7 on that.
I purchased a T135 Toshiba 13.3 inch laptop - processor - ProcessorIntel

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