Yes, you can download Virtual PC 2007
from Microsoft and install your Windows 98.
It's not like setting up a dual boot system where you create a seperate partition and install there. You install Virtual PC 2007 in Vista, then when you run it, it'll prompt you several questions to create a virtual machine (VM).
When you first setup a VM, you have to specify the OS you are installing, location of your VM (it selects a default location in your documents folder, but you can change the location to a different folder), how much RAM (limited by your physical RAM) and hard drive space to assign (limited by the OS you are installing and your hard drive space). Then when you insert the Win98 CD, you'll go through an installation like normal. You'll need to create and format the partitions in your virtual machine.
I have a Windows XP Pro and a Windows NT VM setup on my system. I even setup a shared folder so that I can transfer files back and forth between Vista and my VM's.
I hope that helps.
Originally Posted by wjtrammell