Cool, do you have a download link please?
VMWare is good but it is not free. Only player is free and you can not set-up an OS using only their player.
Meanwhile dual-boot could be achieved easily by using partitioning tools like GParted. Because Windows is not a "secure" OS, installing both versions on one partition is not a good idea. Therefore you should create 3 partitions Vista, XP and shared. On a shared one you can keep common files and docs. Then a small program (bootloader, there are lot's of them around) would handle initial boot sequence (e.g. hide partition, make primary, etc.). To be honest I've never made dual Win boots but tons of Win/Lin dual systems. The idea is always the same.
Hope this helps.
P.S. Yes, I know that the Sever is free but why it is free? Because it has certain limitations and eats-up lots of CPU.
Incorrect - Vmware server is most definately free.
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