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Doable? Legal?

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Currently my home setup is a hodgepodge of disjointed Macs and PCs. Sometime however the last remaining PC will fall to an iMac. Now, invariably a Windows VM may be necessary for Dad and for a few stubborn Windows only programs. Can I install Windows onto an external physical disk (probably on a file server) and bootcamp it or run in vmware AS WELL AS emulate it in a PowerPC Mac, or do the same thing with a virtual disk? If possible, how, but is it legal? Remember I am talking single user licence not Windows Server.

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