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A virtual machine emulates hardware. Therefore, it depends, which HW it emulates and to which extent. For example, VirtualPC by Connectix (bought and fouled by The Godly Bill nowadays) emulates S3 Trio and it has problems with sound cards (sound is available only using an undocumented switch - and if you put /tweakpc on the commandline then you are responsible for the consequences). In the other words - VirtualPC is good but not for apps with big multimedia requirements. Most of contemporary games are apps with big multimedia requirements.
You can try VirtualBox. Virtual box is under development so prepare for surprises but VirtualBow is also considerably newer than VirtualPC. I haven't tried it (I am a fanatic/2 and the support for OS/2 by VirtualBox is far from satisfactory).
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