Comment You just need enough RAM (Score 3, Informative) 272
The main requirement is enough RAM for two operating systems plus some extra for the virtualization system. The CPU is less important. I run Windows XP Pro as a virtual system on a Linux host with VMware Workstation 6. It is a 5-year-old Athlon 3000+ box with 1 GB of RAM. I allocate 512 MB to Windows, which is about the minimum for XP. Current Linux distributions need at least 256 MB and VMware is something of a memory hog itself so 1 GB is about the minimum RAM for this setup. Windows is perhaps just a smidgen slower than it would be if running natively on the same hardware but the difference is minimal. It does not have much effect on the speed of Linux apps running simultaneously. Things bog down fast if you try to run more than one virtual system simultaneously but VMware is good at using multiple processors for this. I did some work which involved running up to 6 instances of FreeBSD simultaneously on an 8-core Xeon system with 4 GB RAM. Up to 6 it did not slow down much. Over 6 it got sludgy.
Have fun!
Mike