The ubuntu install.exe uses a loopmounted ext3 filesystem on NTFS. It is still very new software that does not always work properly (i tried it on a couple of my computers).
I think it would be cooler if someone set up windows to install on a linux file system. That way you could use your windows install when you wanted to play games, and use any windows programs in wine easily.
I would not use it, just because i don't really want windows on my hard drive. But it is still a cool program.
Hardcore porn? F*** that! I want hardware porn. Let's see how your laptop looks naked!