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Can I install Oracle VM in OEL-5 and install OEL-5 in VM too?Sure.
Can I install windows 7 in VM and practice migration of database from Windows to Linux.Yes, if you have a spare Windows 7 license :)
My desktop is Intel Core 2 Duo and 4GB RAM is it enough?Probably not if you want the two VMs running at the same time. Maybe try 8GB.