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VMware Fusion
VMware Fusion is third-party software which allows users to run virtual operating systems (such as Windows XP or Vista) on their Intel-based Macintosh computer. The virtual operating system runs as an application from within OS X allowing users to quickly switch between each environment.
VMware Fusion can be downloaded here.
Advantages: Allows users to quickly switch between OSX and Windows.
Disadvantages: Windows may run more slowly then if it were installed directly onto the harddisk.
Bootcamp
Bootcamp is a utility included with OS X which guides users through the process of installing Windows XP or Vista onto the harddisk of their Intel-based Macintosh computer.
Click here to open the Apple webpage and watch their bootcamp instructional video.
Advantages: Windows runs more quickly then it would from within a virtual environment.
Disadvantages: A reboot is required to switch between operating systems.