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You have completly misunderstood what Win PE is.
Windows PE is a tool that devs can us to make their own lite windows based OS for their products. For example Storagecraft uses it as their recovery envieorment for backing up and restoring images. Win PE is great!
It is not ment for you to use as an OS, like i said its a tool.
For example, a windows 2008 install CD is a WinPE based installer. when you bootup and can start chosing options for how you want to intall windows you are using Win PE.
Virtual PC or Vmware is a hyperviser that lets you install OSes on top of it. So for example, my ESX server has 5 copies of windows 2003 on it.
I like Vmware better, but its also made to be a enterprise product. Virtual PC is ok, but has alot of catching up to do to be compared to Vmware.
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