How does operating system affect the programs the computer can use?

Bisurge

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If a Windows 2000 had more RAM, processor speed, and was all around a better computer than a Windows XP, why can't it run XP programs?
Is there something in the code that disallows them or do they read codes differently? Please explain. Also please explain why more advanced programs have better graphics even though they require i.e. the same amount of graphic memory.
 
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