Thanks for the replies but it wasnt so much the licences for VMware or virtual pc (I've got the demos of them) it was the windows xp license I was worried about and Stash cleared that up for me.
I didnt have much luck getting linux installed on Microsoft virtual PC but I'll keep it installed in the hope of a public trial of vista.
On an other note VMware seems to really slow down my my initial connection to my wireless network, I can only guess that I've got some kind of driver conflict happening. Other than that it seems a fantastic program. Im tempted to purchase it and I'm only using it to play around on.