Please excuse the double-post and thread resurrection.
So I jumped on the latest Linux bandwagon and managed to get a Linux desktop environment integrated with Windows XP. As you can see, I've got Xfce4 running with Compiz-Fusion for my Linux environment.
I have VirtualBox as my virtualization software, since it's noticeably faster than either qemu + kqemu or VMWare + VMWare Tools. It's also possible to get VirtualBox running completely headless (which you can do in qemu, but VMWare always had a grey frame to the window), so you can get rid of the titlebar and window borders. With a headless VirtualBox, Linux and Windows are still separate from each other, so this it where VirtualBox really gets ahead of VMWare.
You can start a remote session of your VM with VirtualBox, so you can use rdesktop with XP's RDP protocol to remote-desktop into your VM. Once you change a few registry keys, you can configure remote-XP only to show the taskbar, and not the desktop when a user logs in. With all of this configured, the VM windows and programs will appear to Linux as additional programs.
I did have some difficulty - in order to use RDP you can't use NAT; each machine needs its own IP. I have a wireless connection and while it worked fine with a wired network bridge into my VM, the packet encapsulation with wireless is incompatible with a bridge. I managed to get around that by (searching for hours and) finding the blog of some guy called Hazard who wrote a program called parprouted which uses ip forwarding with iptables rather than bridging.
I have 2GB RAM, with 700MB into the VM with XP and 1.3GB for Gentoo with Compiz-Fusion and everything is smooth as. The redraw on the VM is a bit crappy but that's because everything is going through my router first. See the screenshots for what it's like.![]()