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One more vote for VMs. I use them 24x7 at home.
In my opinion the *only* reason to go for dual boot over VMs on a modern system is if you need full hardware video/audio support for the guest OS. i.e. if you want to play games on it you gotta go dual boot.
VMs can of course run side by side with your host OS unlike dual boot and they are also ...
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Proudly built from donations and loot.
CPU: Athlon XP 3000+ (free)
MB: Abit NF-7 (free)
RAM: 1GB Corsair DDR 400 (free)
Video: Radeon 9800PRO (free) with modded VF900 to support standard 92mm fan.
Sound: M-Audio 2496 (already had)
Case: Sonata II (already had)
HDD: thin client
OS: linux (free of course)
PSU: Seasonic S12 380W
Fans: ...