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2 Computer network emulated on a single PC.

Back in 2005 I used to be heavily in to network gaming, in fact every week I used to lug my monstrously heavy Alien Wear PC to a friends house along with a few other people and we would spend an unholy amount time blowing each other to pieces.

Although it was great fun the effort required for us to carry our PCs was almost too much and I couldn't help thinking that their must be an easier way.

One day I realized that my PC was well over double the power of my friend's and had at least two of every component:

Duel core processors
2 Graphics cards
4 sticks of ram
On board sound and separate sound card
2 hard disks
PS/2 slots for keyboard and mouse and more than enough USB ports to have an extra of each.

It was then that I thought of the idea of having a network PC emulator. If this was possible then I would only need to take my PC and an extra mouse, keyboard and monitor.

Surely it's possible to have a windows partition on each hard disk and have the emulation software separate the hardware of the PC so as to run two operating systems at the same each running on their own hard disk and running on a completely separate set of hardware. This should also have the added bonus of having a super fast network connection.

I'm sure I can't be the first person to think about this but I haven't been able to find any software which does this online. Has anyone seen any software which does this? Is this possible or is there some reason why this physically cannot work?