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It does have to be installed on your harddrive!!! You are able to run the OS in conjunction with windows, but they both must reside on the system in order to take advantage of the system resources (ie. mouse, keyboard, NIC, etc.). The only cd's that will run correctly without being installed are the "Live" cds like Knoppix, MandrakeMove, SuSE live, etc.
BUT YOU MUST HAVE FEDORA INSTALLED FOR VMWARE TO WORK CORRECTLY. Then you just tell VMWare to look at the boot record and boot into linux (ie. you run windows natively and then run linux in the window of VMWare)
VMWare was designed so that you could run multiple OS's on one machine at the same time, but, like above, they must be installed on the HDD.
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"You hear the one about the fella who died, went to the pearly gates? St. Peter let him in. Sees a guy in a suit making a closing argument. Says, "Who's that?" St. Peter says, "Oh, that's God. Thinks he's Denny Crane."
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