No problem Vino.
VPC uses virtual hard drives, stored as *.vhd, not physical drives. So essentially, you would just be saving the hard drive file to a separate partition, which in turn only saves a little hard drive space in the end.
There's a lot of good info here for MS VPC 2004:
I also read how everyone laughed about trying to run VPC from a physical XP Home installation...never had any problems out of it myself. (well, aside from not being able to install Vista on a VHD)
Have some fun playing with it....it's quite interesting. I even had Linux in my VHD list for a while, but then it made me decide to also go with a physical installation of Linux as well (triple booting
Regardless, let me know how it turns out. I'm interested to see other's luck with it.