You might want to hold out on the file-converting stuff, Freiheit - that's processor intensive, and would take a bloody week on VPC.
VPC6.1 runs happily for non-processor intensive tasks. I generally use it for openCanvas 1.1 (a tablet-painting program, yet unrivalled on either the Mac or PC, including Photoshop and Painter) and for Solitaire (I wish I could find an adequate (hopefully IDENTICAL) port of Windows Solitaire), under Windows XP running with every nonessential service switched off. It runs quite happily, but I wish the cam would run through it better, into MSN. If it would, I wouldn't need the PC anymore.
So yeah, VPC is adequate but I wouldn't be converting AVI files.