Linux does work with VirtualPC.
You just have change the X video mode to 16-bit color because the VPC emulated graphics card doesn't like true color (can be done from GUI or by editing xorg.conf) and add "-- i8042.noloop" to end of the kernel boot parameter in menu.lst to get the mouse pointer to work.
Those steps above should take all of thirty seconds.
Still... why VirtualPC?
Unlike VirtualPC, there are several of other virtualization products that all have been optimized for a varity of Linux guests.
my comment was not that "it does not work" but rather that both groups (MSFT, Linux OS) have created a bad user experience that IMHO is just plain wrong.
and *IF* they wanted to I bet some of the Linux distro folks could make a bit of code to deal with the problem so that a new user would not have to edit files and go looking for how to fix it.
all the "Year of the Linux Desktop" and other grand statements show that the they "just don't get it" in some very simple cases.
and MSFT needs to look at this also, while selling windows seats is msft's main thing having VPC seem to be "unable" to boot linux gives the less educated the impression that MSFT is not able to make a quality product or that perhaps they threw a wrench in the works to halt use of Linux / Unix.
I am not saying that ither camp is doing this... just that both are making them selves look bad to all the folks that they should be trying to sway....
both sides should be working to give the user a good experience.