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I was frustrated that it was problematic to run Ubuntu and Vista and XP on my laptop (I am a consultant and need to have the ability to develop in several platforms) when I realized that I could add OracleVirtual Boxinto Linux (or Vista but I usually use Linux) and run XP . Note that only XP Pro SP3 (which I have) allows virtualization not Home.Vista does not for Home or Business, only Enterprise and Ultimate and the same for Windows 7.
XP runs so well on my HP 6830s with a P8400 Duo that I can't tell that it's a virtual machine.
I'm thinking about creating a second virtual machine that runs Windows 7 Enterprise or Ultimate butI am not happy that I have to buy too much OS horse power to run it virtually.
When virtualization becomes more mainstream maybe they'll reconsider. Consumers are not going to pay for the highest cost OS just to sand box their kid's activities (my nephew trashed my mother's computer with downloads and games last month) if another OS (Linux most obviously) will allow you to doanything.
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Virtualization in the consumer market is a recurring theme in the teams I work on. Things should get better for consumers once adoption rates start to pick up but everybody has a different opinion as to when that will be.
Have you tried VMWare Player? It's always seemed to work pretty well for my needs: sandboxing old XP programs on a modern Windows OS.
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