It's usually called a hypervisor, or virtual machine monitor.
The main advantage is that,the virtual machines reduces the hardware usage. In virtual machines we can load different OS.
No, bootcamp is not required for virtual machines which are running from mac os x. Parallels is a virtual machine emulator you can put any virtual OS into it without disturbing your Mac OS X system setup. Bootcamp is used when you are installing windows natively on the mac.
A virtual machine is very self explanatory. It is a virtual (as in not exactly real) machine that gets run inside of an OS that is already running on a computer. You can find further explanations at the links below.
They think that they are running on a real machine. They will generally run the same as if they were running on the Host OS.
Virtual Machine software does not lag if you allocate appropriate resources to it. If it is lagging, I suggest adding a processor core or increasing the RAM on your virtual machine.
This is usually called emulation.
You only choice is limited to virtual machines such as VMWare. And of course you will have to install MAC OS on your virtual machine.
A virtual machine or virtual computer (we'll call them VMs for short) is a "software computer" that runs inside your real physical computer. There are several programs that can create and run these VMs.
Clicking inside the virtual machine window should "grab" the mouse and allow you to operate the window inside. Depending on the virtual machine, it may also have additional drivers ("guest additions") that can be installed in the guest OS to allow seamless mouse movement between it and the host.
Ubuntu can be installed on a Mac or run from a LiveCD (See links below). It can be run on a virtual machine on top of Mac OS X.
You can't use all of your system memory to run a virtual machine because then there wouldn't be enough memory for the Operating System that's running the virtual machine to function. For instance, if you have 4 GB of system memory total, and your operating system needs at least a quarter of that (1 GB) to function, then your virtual machine maximum memory would be 3 GB.