VirtualBox is a free virtual machine that I have been using for a while It worked perfectly to run Windows XP on my Ubuntu computer. VirtualBox is available for Mac, WIndows and Linux. Connecting my iPhone didn't work. It looks like there is a bug where a connected iPhone is not recognized with VirtualBox.
This isn't a problem in VMware Workstation. I tried the 30 day free trial and it worked with the iPhone. I was able to easily transfer the data from my VirtualBox VM to VMware Workstation. I backed up the VirtualBox to the Windows Home Server. Then in the VMware Workstation VM, before I installed an OS, I put in the client restore CD. This allowed me to restore the image to the new vm.