Yeah, the emulated video card is a 4MB S3 Trio 32/64. Good for basic 2D and not much else. I don't think VMWare emulates 3D either.

The XP install was very similar to the W2K install in terms of choosing partition/file system so I imagine one could dual boot in the same manner as with W2K. I haven't done a dual boot setup since NT 3.51 so others here may know more about any current gotchas.