Is it possible to run a platform virtual machine package within a live cd environment - Windows or Linux?

"I realize that you can use BartPE on a USB key, although you must realize that it's usually a bare-bones XP environment usually used for system recovery.

An easy solution to this problem would be to simply take a live Linux-distribution, and on the disc, put VirtualBox. Then, you could simply have a .VDI (virtual hard disk file used by VirtualBox) on a USB flash/hard drive, which you could pre-install Windows XP onto.

You can get a list of the Linux distributions that VirtualBox supports here."