[PART 3]A few things to try and tweak your guest and possibly host too.
EDIT(6/22/08): ADDED PICTURES OF HOW TO DISABLE NVIDIA CONTROL PANEL THREADED OPTIMIZATION WHICH CAN CAUSE CABAL TO NOT LOAD AFTER THE UPDATE SCREEN.
Since all you will be doing with the emulations is running cabal you will minimize everything that's not needed by windows to give the guests max resources such as:
No desktop background
Turn off themes by using Windows Classic Theme
Set your desktop resolution to 1024x768 16 bit color and cabal to 800x600 windowed
Set windows extras like smooth scrolling scrollbars, smoothed fonts, sliding menus, etc. to Best Performance meaning to disable all of this ****
Turn off System Restore
Turn off Automatic Updates, System Security, Firewall services
These are just a few options. Check out this site for more optimization options.

. BE VERY CAREFUL WHAT YOU DISABLE HERE!
These are just services that can be disabled. Do a search through Google on how to streamline Windows for more.
IF YOU HAVE AN NVIDIA VID CARD CHECK THE FIRST SCREENSHOT TO SEE IF NVIDIA CONTROL PANEL IS RUNNING!
IF THE ICON IS THERE MAKE SURE TO MAKE THE FOLLOWING CHANGE BY RIGHT CLICKING THE ICON AND SELECT THE NVIDIA CONTROL PANEL.