Originally Posted by gklinger
With virtualization, nothing is being emuated. It's an abstraction of computer resources. Virtualization is about partitioning a physical processor into multiple contexts and isolating a series of processes. Emulation is about duplicating the functions of a processor (and other resources) so that a the primary system behaves like the secondary system.
Simply put, emulation is imitation and virtualization is not. Then there's simulation. That's another story all together.
Of course both VMWare and Virtual PC emulate things like the network connections or the graphic card. What you are talking about is an ideal form of virtualization which is existent on Unix systems, but not on Windows
You are right about the CPU, RAM and some I/O aspects, but IMO there's enough left to call these 'emulators'