Vmware rules!!!! After one of my dev computers at work started dying, I rebuilt it as a VM image. I got carried away and ended up converting all my office PCs to vmware images which I then stored on a portable 2.5" hard drive. My office is 100% mobile, much more quiet (only 1 CPU fan running now), and very easy to back up! If you haven't played with vmware, grab a trial copy of workstation 6.0 and try it out!
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