While BOCHS seems to be better at letting you know when something goes horribly wrong with your pet OS... it is very slooooow! I use VirtualPC for general purpose testing and BOCHS when things get murky.
Also, you will more than likely be booting the OS every 2 minutes, so it helps to have some sort of automated way to build a boot image & fire off the Virtual PC.
I built a GRUB boot floppy image with all the necessary stuff to get it to boot the Kernel.Bin from the root. I use a batch file to copy this file to the virtual project directory, use FAT Image Generator to copy my kernel to the image. Then just launch the VirtualPC project. Vola!
Excerpt from my batch file:
COPY Images\Base.vfd Images\Boot.vfd /Y
fat_imgen.exe modify Images\Boot.vfd -f Source\Bin\KERNEL.BIN
COPY Images\Boot.vfd Emulators\VirtualPC\ /Y
START Emulators\VirtualPC\MyOS.vmc
One last suggestion: Set the VirtualPC process priority to low - trust me on this one!
I'd be happy to exchange some code!
Tools: DGJPP, NASM, GRUB.
Code: osdev.org, osdever.net