One of the nice features of VMware workstation is the feature that gives the user of the the software the ability to boot from an ISO image. This is a great feature and another display of some of the great thought put into this application.
If the computer on which VMWare workstation doesn't have a DVD player for example, the ISO image stored on the hard-drive of the host computer or on a network drive can be used to start the installation. The ISO image is read and if it's the installation media for Vista for example, the installation begins.
The guest operating system once installed and during the installation doesn't even "know" that's it's being run virtualized. This is a wonderful feature of VMWare workstation and I often find myself asking why didn't this solution come out many years ago as it's a terrific aid for testing and support of applications. With seperate operating sytems, virtual of course, tests can be run much easier as there's realy no restore to perform or drive swapping like in the old days to bring the system back to a state for a re-test.