The new ubuntu 8.04 just released today has an wubi option that allow you to create a file within window's file system, and then install a native ubuntu and boot into that file. That what I had read but never try.

Sherlock, Ric wrote:
---Oleg Kobchenko wrote:
Here's info how to create disk image and VM template.

VMWare Player Image Creation
http://www.ffnn.nl/pages/articles/linux/vmware-player-image-cr
eation.php

See also:
http://www.easyvmx.com/
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