Unless I've missed something here... The full version of XP Home is way expensive. It would be a great saving if Parallels could strike a good deal with MS about supplying a bundled OEM version. (Although prob. too late for my purchase)
Any Softwares sells Windows XP CDs with legit licenses for $100.00 http://anysoftwares.com/default.aspx?Page=34 I found them from eBay and thier turnaround was quick.
You missed the pc monoply! ;>) What possible motivation would M$ have for 'striking a good deal' like that? hahahahaha! Load Linux and free yourself from the monoply. If you can't, then just suck it up and pay billy goat his fee. :>)
Vpc Well, Connectix was able to sell a bundled version of VPC with Virtual PC back when they weren't owned by, you know... So it should be possible. Definitely, this has "win-win" written all over it. For you guys to be able to sell Parallels for $179 with the program and pre-installed disk image with XP on it, would be great. Not sure if Microsoft allows download only sales so it might be package only.
Microsoft won't develop an Intel version of Virtual PC. I believe that bundling Windows XP (or Vista) with Parallels Destop for Mac should be an intersting option for Microsoft.