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Microsoft on Monday changed its mind again, saying it will allow users to run Vista Home Basic and Vista Home Premium as guest operating systems on a virtual machine. The news is especially welcome for Mac users who want to run the latest Windows version without having to pay an arm and a leg. Until now, Mac users and others wanting to run Vista virtually have had to fork over for the most expensive Business and Ultimate versions.
Microsoft Allows Users To Run On A Virtual Machine [news.com]
Like the author of the article I was never really clear why these versions weren't licensed to run in virtual machines in the first place.