Yep, I have yet to run into a progarm that's not installable.
As for games, nope. Never.
You can play 2D games or board games. 3D is out of the question. VM is geared towards non-gaming applications. Only software emulation.
If you want 3D gaming on Linux, there's a solution. Non-free. Wine-X.
The only drawback of VM is you can't drag and drop files between VM and Linux. The only ways to share files are a) set up samba, strange if you ask me, and b) burn a CDR(W). VM reads CD, DVD, floppies, just fine.