Multiple configurations question

Is anyone familiar with how I can set up my computer with different
configurations.

What I hope to do is use the same computer but with two different set ups.
One will be for work related and home related stuff - for which I have a lot
of software installed. I also want to use the computer for graphic - movies
etc. Installing that sort of software loads up the background system
programs and slows the machine (4gRAM, Dual Core). I was wondering if I
could create a boot CD for one of the configurations - so the machine will
only load the system support processes needed for that sort of work. I am
looking to avoid purchasing another machine for the pictures and videos.

Any help, suggestions - or even a "don't bother" will be appreciated.