You can install Windows directly on your iMac via BootCamp, or use
virtualization software --there are paid options like VMWare Fusion
and Parallels, which are both pretty good, and free like VirtualBox,
which I haven't personally tried but I'm told it's as good as the paid
ones.

As for which version of Windows, I would go with either Windows XP or
7 (XP is stable and proven; 7 seems stable and finely tuned, and is
visually pleasing), and avoid the Vista nightmare.

Just my $0.02.

HTH,

Felix

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