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VMware workstation question
 

Quick question.I'm thinking of buying a new computer from Office Max.They told me that Widows 7 is already installed on the computer and you don't get the windows 7 disk.They said for 30 dollars i can have a complete back up disk of the entire computer system made.Now my question is,can i use that back up disk to create multiple OS's in VMware workstation?

No you can not - You have to have a Windows Install DVD.
Less than $100 at Best Buy.
NOT a upgrade version but a full version.

You can make the back up your self for free, you would need to have 3 DVDs. It's very easy. also I would not buy any software. If you want I can give you a link to get all the software for free.

When using VMWare it would be better to use windows xp, I know where to get one that's only 1GB. Windows 7 would just take up to much ram/space

Stream.

I agree with Stream, XP is much more manageable in VMware under Win7 as it eats less resources (starts quickly, not too much clutter etc...).
A valid alternative is Ubuntu or Xubuntu, they are free to download (no copyright breaching) and they start even quicker than XP in VMware. I think there are even sites out there where you can download Ubuntu pre-installed on VMware so you just need to load it and off you go.

x2 better off, you could just set up a vm of win xp and then back that up and use that as a primary

You can just simply download a torrent with a VmWare image that has windows on it already, and this one you just have to open with VmWare, no Windows installation, no CDs, no money spent :)

Go to torrentz.com and search for "VmWare Windows XP".
Eh... there's the link: VmWare Windows XP ;)