The last several days have been terribly busy, but I did want to drop a note about Microsoft Virtual PC 2007. It's still in beta, but the beta appears to be quite open; I was able to sign up and download the code without any trouble. The reason I was curious about it, aside from being interested in virtualization issues in general, is because it apparently runs Windows Vista a whole lot better out of the box than the older edition did -- and runs on Vista.
As a result, if you want to run Vista now but still have some variety of full-machine backwards-compatibility, you could install Vista as your main OS and have XP running in a virtual session.
(Note that if you have an existing copy of Virtual PC you'll need to unload it before installing 2007; they can't be run side-by-side.)
I'll let you know how things go with it.
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