Running two desktops at the same time possible?

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Hello all, got a bit of a questions here and im a bit stuck for answers.
What i basically want to do is run say two desktops on the same pc (decent enough spec) that are independent of each other, IE what you do in one of the desktops (or virtual screens) does not affect what you do in the other.

Ive had a look at virtual machine but don't think that's what im looking for really, would ideally like to say have two windows running at the same time, like vista and xp that you could switch between with a hot key or something?

So if you can understand what i'm trying to get up is there a program or method of going about this to achieve my outcome?

Thanking relevant posts in advance ;)
 
Can someone please explain which type of vmware i should be looking at please?

So vmware could actually run the two os's at the same time so i can switch between them easily?
 
And as for an example each vm runs independantly correct? So one could be running one program and another could be running something else with its own mouse performing its own actions?

I shall have a look at VMware workstation and give it a blast , its going to be running on an amd phenon (quad core not sure which one, around 2.6ghz) with 4gig of ram, providing im not trying to get it to do tooo much could i expect say 2-3 vm xp's running smoothly?
 
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