That's how Ubuntu's Wubi installer does it, i tried a few month ago, installing and uninstalling worked quite well on a winxp box, see: http://en.wikipedia.org/wiki/Wubi_(installer)The only difference is we'll have to handle the XP boot menu or the Vista one which is different, but it's possible to add entries to it to do that.GSOC2009 ?
I think it's a nice feature. Regards, Alex