1) I'm pretty sure VMware will assign its own range of dynamic IPs (just don't let them overlap with your router's range)
2) I'm also pretty sure the IP could be acquired from the router instead
3) Why dynamic? pick an IP high enough to be out of your router's assignable range and there won't be any IP collisions ...
4) vSphere
Requires a dedicated computer, but opens a wide array of virtualization possibilities.