Wow I am glad the conversation is continuing. I am surprised to see all the other information here. Just some more questions, as I am still a bit unclear...
A VM can use a real drive as storage, but you could not run a Windows install. It would protest at the hardware not being the same as when it was installed, for one thing.
The hardware would be the same, as it is the same machine. Why would it protest that the hardware is different? I have used a disc image of my Windows drive in VMWare and Virtual box with no warnings of this kind.
I've just been running kvm on Fedora and virt-manager gives me the option to specify a raw device as the Virtual IDE drive, so theoretically you could select your physical Windows partition. I've not tested it yet as I dont have a free physical machine to play with atm.
I have only SATA drives, does this matter? (Probably a stupid question but I have to ask.) I can not find an option for selecting a physical drive in either VMWare or VirtualBox. Only Disc Images. Am I not seeing the option anywhere?
Plan B -
Create a C: partition with just Windows OS on it for the bare-metal version of Windows
Create a D: partition with all the user account stuff
Create a virtual drive with just Windows OS on it for the virtual Windows
Setup the virtual system to use the virtual C: drive and share the physical D: drive with the other copy of Windows
Would this mean that the Virtual Machine and the booted Windows would keep the same settings and files? The changes on one would apply to the other? What I want is the Windows in my Virtual Machine on Ubuntu to be the same Windows that I can boot to. Same settings, same files, and if I download/change something it is the same for both. If that is what you mean, then TOTALLY YES THANK YOU. But I have the same issue as before: I can not find an option to load an OS from a drive in VMWare or VirtualBox. I am totally open to using other software if it will do what I want. I can save my Virtual Windows to my Windows drive, but it does not change any settings/files on my Windows drive.
A few more questions: Since so many people say it is not an option to load an OS from another drive to use on a Virtual Machine, why is this so? Is there a difference for an OS running alone vs. virtually that would make it impossible to link them? What I mean is, is it a limitation of the virtualization software or the OS?
Is there something wrong with using a Virtual Machine to run a drive with an OS? I am asking because if what I am doing is against the rules somehow, I want to know.
Thank you for all your help, I am new to Virtual machines, so I thought this was common practice, I am surprised to see it is not.