I recommend reading the Wikipedia articles on emulation and virtualization first.
>>1's question betrays his shallow understanding of matters, especially when it is clear that what he wants to do is "run win98 se sort of inside the other, more modern operating system". Of course being a stupid fucking yank he'll go gather up some "cool" and "techy" sounding words to slap onto his question, even where those do not make any sense next to one another. Idiots.