There's Virtual PC where u only needs 1 PC or Laptop, with Virtual PC installed. With Virtual PC, u could create Virtual Computer, Setup Windows XP, Vista, Windows Server and even Linux.
Version with screen shot available for Download
1. Download Virtual PC SP1 from Microsoft Download Center
or Download here
2. Install Virtual PC SP1
2.1 Click New button
2.2 Click Next button
2.3 Select “Create a virtual machine option”; then click Next button
2.4 Input name and location; then click Next button
2.5 Choose Operating System; then click Next button
Note: It’s only needed so that VPC could assign default value for RAM
2.6 You can adjust the RAM; then click Next button
2.7 Select “A new virtual hard disk; then click Next button; click Finish button
2.8 Accept the default value, you can change the value via Settings button or add new virtual hard disk if needed; then click Next button
2.9 The Settings Button
You can change majority of settings here, its self explanatory so I’m not going into details. Anyway, “enable undo disks” are useful sometimes. Example, you did something on your simulation, then of course you don’t want to retain the changes and that’s where it comes handy. You can always turn it on or off as long as the Virtual PC is not running.
Now, let’s run VPC.
3. Setup Operating System
Note: Don't panic when your mouse get trap inside the Virtual Window;
press “Right
You can use two types of installer: a. .iso or b. CD/DVD.
The process are almost the same even if you use Windows XP, 2K3 Server or Linux.
3.1 Click Start Button
3.2 Capture OS Installer
a. if you are using .iso: Click CD Menu, Capture ISO image, then locate the iso image of Windows XP installer;
b. if you are using CD, Click CD Menu, Use Physical Drive
3.3 Click Action Menu, Reset
3.4 Then you can use the Virtual PC like what you normally do on actual PC. Configure the BIOS, etc. But you don’t need to configure BIOS since it was automatically set to boot from CD. After restart, setup would automatically start.
3.5 Continue Setup; For those who don’t know how to setup OS, use Ms Press Self Paced Training Kit 70-270 for Windows XP, 70-620 for Windows Vista, 70-290 for Windows Server 2003.
4. Once setup is finished. Click Virtual Window Action Menu, then select “Install or Update Virtual Machine Additions”. Once Virtual Machine Additions are complete, you no longer need to press Right
5. Some useful commands;
Full Screen-Mode Right Alt+Enter
Ctrl + Alt + Delete Right Alt+Delete
Pause Right Alt+P
Reset Right Alt+R
Close Right Alt+
Exit Captured Mouse Right Alt