Programming under virtual machine - pros and cons

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I'm an Ubuntu Linux user and I use Win XP only for my work purposes.

Lately I set up a virtual machine with XP + Visual Studio 2008 (powered by kvm-quemu).

My questions are:

  • Have anyone tried to work efficiently under environment set on VM? Are there any performance issues? For example, does slightly worse performance under VM affects your normal efficiency?

  • Are there any other (beside performance) negative aspects of developing software under VM? Are there any problems that I would not be unable to detect/solve in such environment? (we are talking about developing some sort of bigger project, creating an application for Win environment, no hardware related or embedded stuff).

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