Virtual machines: Primary development environment?

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Tags:
ASP.NET
Development
Virtual Machines
I recently got a new laptop that carries Windows Home Basic (that doesn't have ASP.NET). Following that, I bought a Hard Disk Case with 360GB HD. So I decided to create a virtual machine with Windows Ultimate (thinking that with this and the HD case, I would be able to access my "development environment" on any computer I own. But I was worried about the performance since I'm not that familiar with Virtual Machines. Has anyone ever used virtual machines as their primary development environment? Let me know you're experiences.
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Virtualization technology is great for both development, and High Availability environments.  All large scale companies today run virtualization as a means for efficiency and cost reduction efforts.  Microsoft’s E-Mail service (hotmail/outlook) as well as their internal WEB information is hosted in a virtual environment (Hyper-V) and was being accessed in the area of over a billion transaction per week.  Sounds like a production level access that even normal user environments could utilize to me….

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