Why are you giving Virtual PC away for free?
Microsoft views virtualization as a tool. Virtual PC is used for a number of reasons, but the primary reasons are for development and test scenarios and application compatibility. We already provide Virtual PC as part of MSDN for development and test users, and given that all our other application compatibility tools are free - charging for Virtual PC did not make much sense.
And yes it's the full product with SP1 included.... it's not just SP1 that's free.... [Edit] I see the post about it being just SP1 has been deleted....