Just like the way we have software that emualtes playstations, xbox, nintendo, etc, we also have software the emulates an entire computer!
The virtual computer like I said is just another software, and it makes use of virtualization techniques and creates a sort of a layer/interface between the real hardware and virtual hardware.
Just like a real computer, you need to format/ install an OS etc on a virtual computer. Of course, this uses space and resources on the real computer. The HDD of the virtual computer is nothing but a file on the real computer (similar to an image of a hdd). And the RAM used by the virtual computer is allocated from the real computer. So its better that we have lots of free memory in the real computer so that a good amount can be used by the virtual machine.
And similarly the rest of the hardware can be emulated- a virtual cdrom drive is actually an iso file on the real computer, a floppy disk is an img/ima file on the real computer, and so on. But to increase a virtual comptuers functionality, the software provides various means for communication with the real computer. For eg, you can connect your real floppy/cdrom/hdd to the virtual computer, you can have networking and a virtual lan etc.
And you can have different virtual computers running at the same time. Each virtual computer is stored as a configuration/profile- so you can make a virtual computer for windows 98, one for redhat and so on. Thus there is no need to multiboot- you can be running windows xp, windows 98, redhat linux and more at the same time, simultaneously. Of course, this comes at a performance hit, since the virtual computer shares CPU/RAM/DISK resources with the real computer. So if you want to run multiple virtual machines at the same time then you better have a fast comp.
There are many such virtual computer softwares. Two of the most popular ones are Microsoft Virtual PC and VMware Workstation.
MS VPC is good for beginners- its got an easy to use interface, and is very user friendly. VMware is also easy to use, but its got lots of advanced options, especially in the area of networking. And Performance wise, vmware performs better- but the feel of MSVPC is better.
For more info:
*www.microsoft.com/windows/virtualpc/default.mspx
*www.vmware.com/
Since the virtual Machine is an entire PC in itself, you can work in it like a normal computer- only it wont have any effect in the real computer. You can even drag-drop files between the real and the virtual computer, and run in the virtual computer as normal.
If you are having less free ram and a slow cpu, then I recommend using Windows 98 as the virtual comps OS- or else use XP as the virtual os if you are having 512 MB Ram or greater.
Remember, you'll need the installation/setup of the OS and the process is exactly the same as that of the real computert! Only, befor e booting the virtual computer, make sure you connect your real cd rom drive to the virtual computer (In the settings/properties of the virtual machine). Rest of the process - format, install is normal.
And one more thing- Both MsVpc and VMware have special/additional drivers for the virtual machine- if you install these drivers (also called as VMware tools, or Virtual PC Extensions), then you'll have extra features like drag and drop, host and guest mouse support (where you can move the mouse pointer freely between the host (your real comp) and the guest (your virtual comp), and also stuff like folder sharing, drag and drop, high resolution and better perfrmance etc). So make sure that you install the extensions/tools after you install your OS.
*img.photobucket.com/albums/v189/dextersgenius/signature1.gif