Now I have 2 questions:
1) My iomega drive is formatted HFS+ for Mac. I would like to use it in my win/mac migration. I'm assuming that I should re-format it to FAT32, right? Then I can use it with both machines? (it's a 320GB portable drive w/USB and Firewire 400)
2) After I install XP and VMWFusion, how do I go about installing the other Win programs that I want to use? Can I install them from OSX, or do I need to reboot to XP only to install them?
Ref #1.
Yes, FAT32 works for both Windows and Mac.
There are some file size limitations. I think that it is 4GB (Max size of a file) that you can copy on FAT32.
Ref #2.
First you install WMware Fusion. As you go through the install process, there will be able to select easy install or you can do it manually, if you will. Either way, you will be asked to insert your Windows XP install disc.
Once Windows XP is installed. You would then go through the usual Windows update and defrag procedure.
At this point, whenever you want to install a Windows app, you would start up VMware Fusion and start your Windows XP virtual machine. When you insert the CD for the Windows app that you want to install, it should mount directly into Windows.
Note, WMWare Fusion should recognize the CD and mount it directly in Windows. You may need to set a preference in VMware, but usually this happens automatically.
BTW, you won't be able to see, mount, or read the CD on the Mac OS side when it is captured by VMware to use in Windows.
And no, you cannot install Windows software into VMware Fusion from the Mac side. You will need to start up your Windows XP virtual machine to install Windows apps.
On a side note, if you want to keep your Virtual Machine running fast and not bogged down with AV, Spyware, etc., once you have everything set up, you can back up the image by simply copying the VM file. Then when your install gets hosed, you just trash it. Copy your backup VM file and voila, you are back in business in just a few minutes -- whatever it takes to copy the VM file and rename it. Sweet.
Of course the above assumes that you save your files somewhere besides the VM image. I do this by sharing a folder with the Mac OS. All my files are there on the Mac side. This keeps me Mac centric, but I can use Windows XP and have access to the files.