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You know, you can also download dozens of free virtual machines, ready to be run in for instance VirtualBox. Here's one site worth to check out: VirtualBoxImages.com FREE Downloads | VirtualBoxImages.com
Notice that these are so called virtual appliances (= a virtual machine already containing an operating system). Appliances on this site are all in vdi-format (virtual disk image). It is the default vhd (virtual hard disk) format of VirtualBox. Other virtualization applications have different default formats, but normally you can mount (=use) vhd's on other virtualization applications as well. For instance, you can easily mount a Virtual PC .vhd image to a VirtualBox machine.
This tutorial might interest you. The steps to create a VirtualBox virtual machine described are globally valid, you can follow those steps to install OS to a vm (virtual machine). Just choose the install media you want to use, ISO image or CD/DVD, and follow the procedure described in part 1 of that tutorial, and the launch then vm and follow instructions on screen.
If you want to practice, you could for instance download a free 90-trial of Windows 7 Enterprise here, and install it. The tutorial I mentioned tells you how to do it in VirtualBox, this tutorial shows how to install a free and working XP in Virtual PC.
If you need help setting up your first virtual machines, post your issues on our virtualization section. All our virtualization tutorials can be found here.
Kari