If you don't do anything inside of Program Files, but use Program Data instead, it should work. Vista comes with Net 2.0 Framework already, so she might be up to a later version.

Why don't you download Virtual PC 2007, and install Vista INSIDE of XP, to test it out?

I have a VHD image of DOS 6.2, W2K, WXP, MediaCenter, and Windows 7 (all running inside of Vista 64 Bit w/4gb of RAM)

You need enough RAM to give a Virtual Machine over 256MB (Win7 has 1gb)