I have been using VMware since 2002. My first use was to create a development environment in a guest VM, then replicate it for my teammates. When it came time for a hardware upgrade, I switched to my new desktop in about an hour (install VMware, copy VM).
I use VMware constantly, on desktops, on notebooks, and on servers. I use them for development, testing, and production. I have tried playing games inside a VM, but most games just don't cut it (and VMware says so, but I tried anyway). However, the newest VMware Workstation versions just might play a few games okay.
I particularly like VMware on my laptop, and I really like to use it for Ubuntu Linux. I find it best so far to use Windows (2000 Pro SP4 or XP) for the host OS because of the superior device drivers. However, I prefer to actually work on Ubuntu for my development, but that works great in a VM. I have installed Ubuntu directly on various hardware, but so far have not been satisfied enough to leave it for more than a few months before reverting to Windows again.
However, my laptop does run Ubuntu nicely, and I only reverted back to Windows XP because I want to load an eSATA card that will give me high-performance access to an external hard drive to...run VMs!!! I have not yet done that install yet due to distractions at work.
Speaking of work...I have "acquired" three old orphaned desktops that I am turning into VM hosts. I am about to attempt loading VMware ESXi, although I just finished loading two with Windows 2000 Pro SP4 and VMware Server 1.0.8. I manage a development team, and I am primarily targeting these VMs for development environments since our company cripples our primary desktops/laptops too much for real work.
Drink the Koolaid!!! VMware is awesome, and there are lots of other good VM options as well!
Best wishes.
EDIT: more goodies...
In particular, check out VMware ESXi, VMware Server, and Ubuntu JeOS. Yummy stuff!!!