Does this statement imply the machine hosting Virtual PC and IE becomes vulnerable to malicious software?

No. Only the guest OS (WXP, W2K) is vulnerable. It runs in sandbox.

no reason to suspect anything will be different

Colors are different (due to the matter of Mac's different gamma).

How does using VPC, compare to just using Browser Cam?

You can try behavior or interaction too.
AFAIK BCam has now a remote access, but I've never seen it.

--
Jan Brasna aka JohnyB :: www.alphanumeric.cz | www.janbrasna.com
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