Just staing my findings in case anyone does not already know:
For those that chose to run a "virtual machine" with XP inside vista(as host), the program recommended is "VMware", NOT "M$ Virtual PC" wich is free but does not support USB at this time.
Lack of USB support means cannot run upgrade or sync 6700 in a virtual machine.
Vmware program can and has 30 day eveluation here:
http://www.vmware.com/products/ws/overview.html
Another possible solution:
For those who chose the free M$ virtual PC program, you can try to run your existing virtual machine created there on VMware free player, an alternative that I will be testing, located here:
http://www.vmware.com/products/player/faqs.html
Look what he page says about the free version:
"VMware Player includes features that enable users to configure their machines for optimal performance as well as access host PC devices..."
Anyone tried please post comments.