Microsoft Virtual PC is a PC emulator from Microsoft (previously Connectix). You can install a number of different operating systems and easily move files in and out of the virtual machine. Best part: It's Free! (second best part is that it emulates DOS sound/networking... Duke3d! haha)
While Premiere loaded and ran fine, even scrubbing alright... previewing was quite slow. If I had a top of the line machine this might be more of a reality. The other issue is how to operate on video files in the virtual machine. Because the virtual machine uses a file for it's virtual hard drive you cannot directly access your actual hard drive. Instead there are two options.
1) Use the Networked Folder function - The network folders function resulted in terribly slow access time. The upside was I didn't have to copy anything into the virtual machine.
2) Copy the files into the virtual drive - In testing the files that were copied into the machine things were a bit better, but still not exactly usable. This of course resulted in a huge virtual drive.
I look forward to having a faster machine...

Tested on:
Athlon 64 3400+
10K RPM non-OS drive.
1GB Ram (DDR 400)