I know that it is not possible to run a modern game through VPC due to the lack of access to the hosts video card. But with Dual Boot does it utilize all of the hosts hardware so that you can play these games?
Dual Boot is like running the game on a PC, except without as good a graphics card as you would get on a self build PC. Otherwise Consoles are really nice these days.
Actually the virtualization (not emulation) programs aren't that bad for games. You won't be able to run anything horribly new and you'll have to cut down on the settings as opposed to using boot camp. I think both Parallels and VMWare Fusion both support some of DX 9.
Your use of the term VPC makes me think that you are on a PPC Mac. In that case you would not be able to run Widows in a dual boot scenario. Only in VPC. if you are on Intel then you can use either a VM or dual boot. For a more intense game you would want to dual boot.