Virtual Machines and Windows on Mac

I got a copy of Parallels and gave it a go with Vista on my MBP. The thing worked well until I tried to upgrade the parallels software and the thing froze. i then had issues with the activation key even though I bought parallels retail. When it was working it was great. but here's the thing - not news to most I'm sure - But I was working with Vista HP Upgrade. Thinking that I could use my old XP disk if need be - but trying the clean install workaround. It didn't work in parallels - then I learn that you can't do it anyway as you have to have Vista non upgrade edition of either Business - ultimate or Enterprise. They cost a fortune. In fact in Pc World [Ireland] A laptop [ok it's a PC] with Vista Basic installed on it actually cost less.

So what to do? Will XP Home edition [non upgrade work?]

What about VMware Fusion - Better than parallels? Or is boot camp the best way to go.

Cheapest and best option advice please.

Parallels is definitely the best way to go.
I believe XP Home will work.
Give it a shot.

Thanks - I've re-installed everything and have xp home on order at a reasonable price so should be up and running any day now.