Question : Bootcamp, VM Ware, Windows Vista Premium/Ultimate

Hello Expert Exchangers-

In a coninuting saga to learn about the challenges of switching from pc to Mac, I have a two questions regarding bootcamp, vista, and VM Ware VMFusion.
Question 1:
Microsoft's EULA for Vista Ultimate and Business allow them to run through a VM program (Parallels/VM Fusion).  This means that is you plan to run Vista through a VM on a mac, you must choose one of the two.  'Lower' versions will not work (although most XP versions will work).   Incorporating bootcamp, installing windows on a mac can be accomplished a few ways; natively through bootcamp or through VM software.  If a windows OS is installed natively through bootcamp, regardless of the version, can Parallels/VM Fusion legally run that natively installed OS as a virtual machine without violating the EULA?

Question 2:
I am trying to decide whether to use Vista (whichever version) or XP.  I "only" have 120 gig drive (80 gig currently remaining) and using Vista Business or Ultimate requires 40 gig (15 gig temp) meaning that my HD muct be equally paritioned.  I am contemplating staying with XP Professional since a) It is requires less resources, and b) has more 'bugs' worked out.  The downside is that Vista is getting better and future XP upgrades/patches/support may fall off in the future in favor of Vista.  If choosing Vista do you really need the 40 gig of available space or just the minimum needed to install?

Regards,

Answer : Bootcamp, VM Ware, Windows Vista Premium/Ultimate

On question 1, you were right at one time but things have recently changed:
http://arstechnica.com/news.ars/post/20080121-microsoft-relents-vista-virtualization-ban-lifted.html
I have seen that in a Windows Team Blog but can't find the original link.  
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