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RAM would be the limit at each stage. You'd need to make sure that your actual machine would have enough ram to emulate the first level, which would need to have enough ram to emulate the next and so on until you got to a point where the topmost level of emulation requires more RAM than you have available.Of course, the speed would be nothing short of glacial.
And I felt bad for trying to fire up an old version of DOS UAE in PC-Task.. Russian Doll method of computing. I would find it REALLY useful if not for its speed and WHDLoad.
And what do you think of that?