I've done this many times. I currently have SUSE Linux and Ubuntu on VMWare (Virtual Machine). I'm running XP because Vista is crap.
So, there is really no serious answer to be serious about. All you have to do is create a new virtual machine and install the Linux on it. It won't do any harm to your computer at all.
You can set the virtual machine to use your CD/DVD drive, so you can install the Linux on the virtual machine from your actual drive :-). You can also download .ISO files from a relevant Linux website and mount it on the virtual machine's drive.
Hope this helps.
By the way, if you really want to do a dual-boot with XP and Ubuntu (it doesn't really matter if it's Ubuntu or not - atleast if it's Linux it's ok) take a look at the link in source on how to create an XP/Linux dual-boot.



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