Performance of VMWare is very good, and I can run a SQL Server slice, a web server slice and develop on my laptop simultaneously. The VM slices reside on a USB 2 portable drive and make it easy to port between my laptop and desktop.
VM Console works well for accessing each environment, and depending on the configuration you set up with NAT vs. Bridging you can UNC to shares on slice.
The nice by-product of this is that should you host machine take a nose dive you can quickly recover your development environment.
