I’ve installed Parallels and Windows XP on my iMac. Now Boot Camp is great, but I also have a PC laptop for testing and it’s always been faster to switch to the PC than to reboot into Boot Camp Windows on my iMac. Until now.
Parallels runs a native virtual machine where you can install XP or Vista, from within Mac OS X. You can also install multiple versions. Windows runs in a window in Mac OS X! Copy and paste, full file system access, hardware sharing and even a cool Coherence mode, where Windows runs ON TOP of OS X. Here you can run Windows and Mac software side by side!
It’s really great, although I need an extra GB of RAM more than ever now….