On my PC running Windows 7 I use VMware Player to run Ubuntu in a virtual machine.
What would I use in my MacBook Pro to run Ubuntu? What about for running Windows?
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VirtualBox is free (as in beer and as in speech), and I've run Ubuntu under it just fine. Of course, Oracle just bought Sun, so we don't really know yet if they will continue offering VirtualBox for free. Supposedly Windows runs under it just fine too, I haven't tried it, though VirtualBox doesn't offer any sort of video acceleration so lots of the new eye candy in Vista and Windows 7 won't work so well.
The other two common choices are Parallels and VMWare Fusion. I'd check a recent comparison of all three that was published in Macworld for information on how to choose between them.
This Superuser question compares the 3 options mentioned above; Paralles, VMWare Fusion, and Virtualbox. Well worth the read.
I prefer VMWare Fusion, particularly if you like running several OSs, particularly Linux distribution. The availability of canned "appliances" makes installation very quick. Parallels is also very good, and Virtual Box is both good and free, Any of them will run Windows well. Virtualization has gotten fast enough to support the Aero effects in Windows, but dual booting is still the best choice for playing games at high frame rates.