I recently purchased MSDN Universal to gain access to the lastest Microsoft betas including Longhorn in addition to the latest SDKs. I have been very pleased with Virtual PC, which makes it easy to run multiple operating systems in a window for testing. Previously, I used multiple swappable hard drives on my laptop, each with multiple partitions.
I managed to get Longhorn running within Virtual PC, and the performance was quite reasonable, but I decided that I would still use a dedicated machine since there is still a performance hit.
I have already set up several virtual machines running different OSes. This is mostly for testing, but I am using one as a sandbox for running suspicious applications on the Web and another for the Whidbey Community Technical Preview. I like how Virtual PC makes it easy to share the clipboard, folders, and peripherals among different VMs and the host computer. It also supports the ability to undo changes to a session, save the state of a machine, and even clone that state.
One problem: I have not been able to install Windows 98 SE or Windows ME on a virtual machine, because the MSDN OS disk does not support booting to Windows 98 or ME setup, only to Windows 2000 and XP. Has anyone had luck installing Windows 98 SE or ME from the MSDN disks? It seems that I would have to install another OS like Windows 2000 that has bootable setup support; is there a faster way?