Posted July 16, 2012

There are lots of games, applications, and hardware drivers that need a "real" XP system. I tried to make those work in Windows 7, in Microsoft Virtual PC, in VirtualBox, and in VMWare Player. None of those four environments yielded satisfactory compatibility and performance for the things I want to do in XP. The performance of 3d games in these virtual machines is laughable. I'm very happy that my system allows me to dual boot.
Dual Boot doesn't have any problems if you set it up correctly. You can have your XP install completely independent from anything else on this computer, on its own partition, separated from everything else. The only thing that can happen is that something destroys your boot sector, but then you're screwed no matter if you use single or double boot.
Personally, since I tend to switch between XP and 7 often, I set the two OSs up in a way that they use the same installed programs and personal data. That takes a bot of work, doesn't work for every program, and creates problems with Win7 restore points, but it's worth it for me. I'm currently using Opera in XP. It uses the same settings, bookmarks, speed dial, etc. as my Win7 version. Any updates applied in one system will automatically be carried over to the other one. It's pretty convenient actually.