I am running 64-bit Vista with 8 GB ram and 4 cores. It supports hardware-assited virtualization.
Using Virtual PC 2007, my newly built 32-bit Windows XP Pro VM is running incredibly poorly. Even the simplest actions like showing the start menu will cause the CPU usage to hit 100%.
The same VM setup hosted on a dual-core 32-bit XP Pro box without hardware-assited virtualization work just fine.
Any suggestions? Right now it is almost unusable on my Vista box and I don't even know where to start looking for the cause.
Just a few tips that should help. By the way I have the same exact setup on my desk as well (Quad Core Intel Q9400, 8Gb RAM, Vista 64) and have been using Vmware Server 2 with multiple VM's without issue.
Are you sure that the Virtualisation technology is enabled in your BIOS? Your setup sounds identical to mine (Quad Core, 8Gb, Vista x64) and I run dozens of Virtual Machines (albeit VMWare) without it missing a beat.
As an experiment, I turned Virtualisation off and found performance was greatly hampered.
That would be your first stop - checking to see if it's actually enabled in your BIOS.