I was just introduced to
the Xen virtual machine monitor, a system to run several Linux virtual machines on top of a (modified) Linux kernel. Of course, such systems already exist, but Xen seems to be special: it is easy to install, virtual machines are easy to configure and everything runs just smooth. As root filesystem, you can use physical partitions or disk images. At work, we use it to separate the different test systems from each other: currently, we have one domain (that's a VM instance in Xen speak) running Oracle 9i, one domain for web development, and one domain that is planned to be used for automated test compilation. Anyway, it looks really recommendable, and I will probably also use it at home.