Leopard to Include Virtualization Software? - MacRumors
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Leopard to Include Virtualization Software?

MacOSXRumors claims that according to "reliable sources", Apple is developing virtualization software to be incorporated into the next version of Mac OS X - Leopard.

According to the rumor site, the upcoming software is code named "Chameleon" and is being developed alongside both Intel and Microsoft.

Virtualization software would potentially allow users to run alternative operating systems alongside Mac OS X. There has been previous discussion about Virtualization Technology support in Intel's processors.
Microsoft has been reported as being committed to porting Virtual PC to the Intel Macs, but early claims indicated that Apple had "yet to provide developers with the deep hooks needed for such virtualization." This rumor would suggest that such support may not arrive until Mac OS X 10.5 , Leopard, which is expected to be first demoed at WWDC in August.

While Booting Windows XP on Intel Macs is now possible, many users look forward to using a virtual Windows XP environment alongside Mac OS X. This sort of side-by-side existence would prevent the need for rebooting to use a particular application.

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