Thanks for replying. Really appreciate it.
I've used VMWare and Virtual PC a LOT in the past, but not used in a long time. I know some functionality for items 1 & 2 exist but wanted to get a comparative idea between the various options LISTED in the Link. I guess I was a little out of touch when I realized so many products existed just to do P to V. I remember only VMWare had that for a while.
For me the ability to "share" & "copy" these files is critical. PS: Also, I may or may not have enough storage on the Win 7 x64 drive so I'll have to run the guest VM from a USB 2.0 HDD. Would that work okay?
PS: What are the pros vs cons of V2HD vs VMWare? (Given the updated specifics of my scenario)
OK, I took a look at your link. Of those I really only have experience with VMWare and Microsoft products. Several of those are enterprise solutions that probably won't be suitable for a one-off thing. I've played with VirtualBox a little bit, but not enough to make a strong statement on it.
With both products, you'll be able to setup networking to allow the physical and virtual machines to talk to each other over the real, or virtual, network. VMWare does have, I believe a way to share those files a little more directly, but I've never done it that way.
An advantage of VMWare is that you can pass through your real hardware to the VM. For example, if you plug in a USB stick, you can pass that directly to the VM. You can't do that with Hyper-V / VirtualPC / XP Mode.
Your USB HDD should work as a host for your VM, but it will slow it down a fair bit.