I note today, that Microsoft have caved in to pressure and are modifying their terms and conditions to allow Home Basic & Home Premium versions to be used under virtualisation "Neil Sanderson, who heads up the firm's UK virtualisation biz, confirmed that Microsoft had opened up the two low-end Vista versions to virtualisation and planned to update its end-user license agreement (EULA) to allow customers to use the technology on the home desktop."
Hello, you are right - Vista Home Basic & Premium are now allowed for virtualization so you can use them as your Guest OS's.