I decided to install VirtualBox on one of my laptops, which has a Core i3 processor, 2GB of RAM, an integrated Intel video card, and Windows 7 to play some old 16 bit 2D games from the 90s, some of which use QuickTime, like Carmen Sandiego, etc. The virtual machine is running on Windows XP Professional with 525MB of RAM and a 6GB HDD. Is there a better configuration, let alone better virtual machine software that I can use?

You'll just have to tinker around until you find the right setup that's right for you. Normally any config should work pretty good but a little confused, do you have a windows 7 running windowsXP through virtualbox or is it you have windows XP running windows7 through virtualbox?

@vackillers: Windows 7 is my native OS and VirtualBox is running Windows XP. Also, do you recommend any other virtual machine software over VirtualBox, like VMware Workstation or Windows Virtual PC?

VMRware Workstation is the absolute best I have ever used... very easy to use, and it works, works well...... Windows Virtual PC is a bit on the shitty side if my memory serves me well.... VMware its very good on system resources, I've had like 6 different VMs running at the same time with next to nothing using my resources really...