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I am running a 15" MacBook Pro (2.66GHz) and 4GB of RAM. I am considering downgrading to a 13 MacBook Pro (2.4GHz) with 8GB of RAM.

Most of what I do at work is through Windows and I need to run it virtually. So my real question is when running a virtual machine will the virtual processor be utilizing RAM or part of the hosts processor?

My assumption is that it will utilize the allocated RAM but I have seen zero documentation to support that.

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The virtual machine uses both physical RAM and physical CPU Time.

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As a comment, if the OP by some reason will install a 32-bit version of Windows, it will use no more than 4GB of RAM total and 3GB would be only accessible for applications. –  whitequark Jun 17 '10 at 13:35
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