You can do it now with version 3.2.6.

Using the Single Computer by Multiple People
VMLite contains built-in features that allow mutiple people to use a single physical computer at the same time. Each user can run a different operating system without conflicts, and each user sees an independent physical computer, with his or her own display, keyboard and mouse. This functionality is made possible due to VMLite's multiple monitor and USB device supports.

Requisites
your computer must have at least one external monitor port
your computer must have at least two USB ports
one external monitor
one USB keyboard
one USB mouse
Steps
Plugin the external monitor, keyboard and mouse to the corresponding ports. Only USB keyboard and USB mouse are supported. Make sure to setup the external monitor as extension of your desktop.
start a virtual machine, for example, the VMLite XP Mode virtual machine, in normal display mode.
disable mouse integration of the vm by clicking the vm window's menu File > Disable Mouse Integration. This is very important, otherwise your external mouse won't work. Note once integration is disabled, you will have to press the Host key (right control key, by default) to release your primary mouse to the host desktop.
click on vm window's menu Devices > USB Devices..., and attach your USB keyboard and mouse, below is a screenshot:



If you want your keyboard and mouse to attach to the vm at boot time, you can configure the USB Device Filters from VMLite Workstation when the vm is offline.

drag your vm window to the external monitor, and click menu File > Enter Fullscreen mode, the vm should display exclusively on the external monitor.
a second person should be able to use the virtual machine now from the 2nd set of display, keyboard and mouse, as if it is a real physical computer.
when done, you can shut down the vm, and unplug the monitor, keyboard and mouse from your computer.
don't forget to enable the mouse integration of your vm next time after it boots, you can do so from vm window's menu File > Enable Mouse Integration.

Works perfectly. Thank you very much.

this is amazing, it really works !!! thank you.

If we provide a hardware device that allows you to use one computer as multiple PCs, will you be interested?

Say, the device costs about $100, it can hook up a monitor, keyboard and sound card, connect by one USB cable, or as wireless.

Not really sure if it would be useful to home users. But IMO it can be very useful in educational and office environments.

PS Mainframes are back )) Big computer and a lot of dumb terminals ))

We do have prototypes of such devices, works nicely. The different thing (compared to other terminals) is that each user sees a totally different and separated OS, it could be Linux or Winodws, running as guest from VMLite Workstation.