To some earlier questions in this thread:
The free version of VirtualBox can use USB devices though I think you have to install the Guest additions.
You can convert your physical install to a virtual machine:
https://www.virtualbox.org/wiki/Migrate_Windows
http://www.sysprobs.com/virtualbox-p2v-disk2vhd-errors-fix
and for VMware:
http://www.vmware.com/products/converter/