Well, VMware might be a little more than what you need, not too mention that it's not free. If you want to go the virtualization/emulation approach, then VMware or
QEmu is what you want. However, I would first go with
WINE which is a Windows emulator. You can run a surprising number of applications through it and they will run a lot faster since there won't be a need to virtualize any hardware.
PS: If you go with QEmu, you will want to (but don't have to) compile the accelerator module for it which does need to be compiled against your kernel sources (that'll convert it from an emulator to a virtualizer). Also keep in mind that when going this route you will need to install Windows XP into a virtual harddrive as well which can be a little involved when you attempt to hook the virtual network into your real network.