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Microsoft has announced to offer Microsoft Virtual PC 2004 for FREE.

Download Microsoft Virtual PC 2004

http://www.microsoft.com/windows/virtualpc/downloads/sp1.mspx

They also announced a change to the Vista license related to virtualization: Customers who deploy Windows Vista Enterprise have the ability to install up to four (4) copies of the operating system in a virtual machine for a single user on a single device. Even better, nothing in the license requires that Microsoft Virtualization technologies be used – if you want to use a competing product as your Virtualization solution, you still get the four extra licenses for use with VMs.

Source: http://blogs.msdn.com/mikekol/archive/2006/07/12/662511.aspx