Running Linux from right inside Windows, just like a normal application !!! Idea looks cool. I was also searching for the same thing. After little bit of Googling got one link http://www.lifehack.org/articles/technology/beginners-guide-run-linux-like-any-other-program-in-windows.html This article explains everything about making it possible. (Thanks Kyle Pott 🙂
I had downloaded Fedore Core 7 Live CD. Tried same with this method. It is working perfectly fine. Rocking Infact !!! I have 1 Gigs of RAM in my laptop. It is giving good performance but will definitly rock with 2 Gigs.This is how it looks like on my laptop .