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Is there good, robust enough for every-day use, way to setup free hardware-based virtualization which would support at least Windows and Linux and also be supported by some usable, user-freindy and free vm management software?
I know about VMWare ESXi, its free, but vm-management software for it not free. Is there something comparatively powerful?

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vmware's client is free to use. – Mxx Feb 17 '13 at 2:54
Virtualization requires a host OS, even if it's a small stub; something has to access the hardware. – Ignacio Vazquez-Abrams Feb 17 '13 at 2:56
@IgnacioVazquez-Abrams This is perhaps a bit splitting hair. ESXi does run an "OS", but for all intents and purposes it's not existent other than to run hypervisor software. – Mxx Feb 17 '13 at 2:59
The vSphere client will manage your ESXi installation, get it by logging in to the built-in web server after installing ESXi. – Michael Hampton Feb 17 '13 at 7:24

Citrix XenServer free version also works very well. It also has a management tool which is free.

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