Woah! News Flash!!!

Microsoft just made Virtual PC 2004 100% free.

Now you've got absolutely NO reason for not using virtualization. None at all.

At present, here are your free options:
Microsoft Virtual PC (just made free TODAY!!!!)
Microsoft Virtual Server (it's been free for a while now)

VMware VM Player (pretty limited in functionality)
VMWare Server (pretty spiffy - offers excellent performance)

I still prefer to use VMware Workstation on my own laptop here in the office - in fact I seriously could NOT LIVE WITHOUT it at this point. It offers superior performance on desktops and laptops compared to Virtual PC - but that's not to say that Virtual PC is a tug-boat or anything. If you've got an external drive, Virtual PC works perfectly fine. (Without a virtual drive, startup, and heavy disk use will be a major pain (can't really comment on how VMware Workstation works without an external drive though)).  What I also find interesting is that while I can notice a performance difference between VPC and VMware Workstation on my laptop - the opposite seems to be true on my server. On my server VPC seems to be tons more speedy/responsive than VMs running on VMware Server.  Of course, VPC also has that annoying bit of functionality where it gobbles up huge chunks of RAM when each VPC starts up - whereas VMs dynamically grab RAM which lets you run oodles and oodles of VMs on a machine (something you can't do with VPC (but which you can do with Virtual Server)).

If it sounds like I'm rambling, I am. I live in virtualized environments every day. I use virtualization anymore about as much as I use Outlook - and I float back and forth between MS and VMware offerings just about every day - and if not every day, then at least every week.

Accordingly, here's what I think the ideal virtualization solution would have:
- VMware's ability to dynamically allocate RAM. (I hate how VPC gobbles it all up statically)
- VPC's excellent user interface and ease of use. (Not that VMware is 'hard' it's just not as clean/good as the VPC interface in my impression).
- VPC's ability to REALLY turn off sound. (I HATE how VMs take over the host's sound card - change the volume, and use 'speaker beeps' even when you've disconnected sound on them. MS VPCs can run completely silent).
- VMware's snapshot functionality.
- VMware's extra hardware support.
- VPC's system tray goodness.
- Full support for freaking Intellimice (and other 5+ button mice). mumble grumble.

At any rate, if you're not leveraging virtualization currently, get out and do so. Microsoft's Virtual PC is an EXCELLENT option - one that you'll love.