After lunch yesterday, Will and I wandered into S.F. to find the hotel suite where VMWare was demonstrating their upcoming Mac OS X release:
In the above photo, you can see VMWare running Windows XP inside of a VM running on a Mac mini. The VMWare demo that we saw appeared to have pretty amazing USB support - in the screenshot you can see iTunes connected to an attached iPod, and a logitec USB camera displaying a live video feed. In addition, the VMWare VM can expose the two cores of a Core Duo chip into the virutalized operating system - so Windows XP actually saw two processors.
It didn't look like much has been done in the way of UI work -- they weren't able to show me any UIs for configuring VMs or building new ones. The VMWare representatives did say that they were going to do everything in Cocoa, fortunately.
All-in-all, an impressive demo, but the jury is still out in terms of when this is going to come out (not until 2007, it seems), and how much its going to cost (currently, VMWare workstation goes for $200).
-Andy.