Means XP Compatibility Mode in appliance to DAEMON Tools software.
Correct answer is NO!
Any compatibility settings must be applied for any apps only if you really know what you are doing.
In any way, you need to avoid compatibility modes for DAEMON Tools setup and for DAEMON Tools starting. It will not work.
In case you have any problems with DT setup or in program use, it would be better to search help, forum, or contact support team.