I personally use Parallels Desktop 5 for my Windows virtualization. Like Fusion, it is compatible with Boot Camp, so you can boot Windows directly to the metal if you need performance improvements (empirically, it really matters).
Both Parallels and Fusion provide access to mounted volumes between environments when both are running. Parallels can also be configured to use your custom Mac directories as Windows user directories, although I'm not sure that they remain available in Boot Camp since they will be stored in the HFS partition. You might be better off leaving them separate and either migrating them as needed, or using a repository or synchronization tool to keep both environments running. It depends on how much you need to move the files between them.
Regarding software installation, I pretty much have a fallback installation of VS 2008 and SQL Server 2008. No matter what someone else says, you will notice a difference in CPU intensive processes, such as compiling on the hardware you use. This is followed by work under virtualization. On metal, Windows 7 works like oil.
warrenm
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