No, it's not emulation. It's the real deal.
I suppose dual booting is really a must when running Linux on Amiga, since you need the ROM for reading from your hard drive at startup.
I don't know exactly how it works with Linux m68k but when I was running NetBSD on my A1200 i think there was a small program you had to run in AmigaOS before you could boot to BSD.
However, if you want to try out Linux I'd actually recommend another platform than 68k. Even on an 060, you can most likely forget about running modern stuff like Mozilla and KDE. I've seen Linux m68k running on an 030/28MHz and even the console was sluggish. If you don't have a supported graphics card you can ignore X-Windows completely, AGA is simply too slow unless you like monochrome graphics :-)
If you have a PC, I'd recommend you to use that for Linux instead.
