I have a 2.93 Corei7 iMac with SSD and drive. I have an external WD 1.5 TB drive I wish to use for 'Windows' purposes. I presently use XP with an older version of Parallels for some older software for work. It is adequate but cumbersome. I really want to make an external bootable Windows Boot camp system for games, and better performance of those other needed apps, however retain some level of ability to use an emulator if needed. I have the latest versions of both VM and Parallels from various sale bundles recently. What is the best approach for this? I want to keep as much off the SSD as possible due to space issues. Performance is important but by no means the top tier priority. I am talking older games like Diablo2 LOD and many other shareware titles and some simple programs for scientific cataloging and microscope use. I am inclined to have Bootcamp used as the last time I set up Parallels V4 I did not use BC and I feel I missed out on some performance. So now I want to have all my options open. I have my Windows XP SP 2 disk and I also have a downloadable Windows 7 from the Work at Home program. Can I make 2 partitions on the drive? Presently the drive is empty, Mac formatted with GUID. I am guessing I need to reformat to NTFS, but will that allow Bootcamp booting of Windows? If anyone can provide the latest info I would appreciate it. I have searched and found many threads but none cover the exact situation and the two I did follow yielded an external drive that did not work with Bootcamp but did work with VM. Thanks in advance.