Microsoft: Virtual PC Will Run Linux:
"Carla Huffman, Microsoft's product manager for the Virtual PC, told eWEEK that the software will be available by the end of the year, through Microsoft's existing retail and volume licensing channels, for an estimated retail price of $129, $100 less than the Connectix price of $229.

'We have not removed any technical features that supported other non-Microsoft operating systems. So there is no negative impact to customers to running non-Microsoft operating systems on Virtual PC,' she said.

The confusion around the product has been around official Microsoft product support services, Huffman said, adding that Microsoft is treating the use of Linux the same way it treats the use of any third-party application on a Windows operating system. "

http://www.eweek.com/article2/0,4149,1378286,00.asp