I would highly recommend on a server like windows 2008! doing it on client machines requires alot of changes/hotfixes!
What you want is vm like oracle, install your server 2008 r2 or other.
install SQL
install sharepoint 2010
get everything setup and backup you Virtual Hard disk! (just incase you break sharepoint ;) )
developer only means developer only as running this (sharepoint) for actual use as a server on win 7 is not reccommeded and should only be used for development! an example like setting up iis ect
directly installing sharepoint is not recommended! VM all the way! a good example is virtualizing memory HDD , virtualizing RAM and ports ect! where you cant do that localy! I do know that win 7 is supported but i wouldnt recommend it ;)
One thing that i dont like is companies having one version on their pc (vm) compared to Dev/Int and production server! they should all be the same! let alone a different setup for client side development rolf!
BTW sharepoint doesnt take over ;) its extended onto the os! server os were designed for it, win 7 isnt! so you would need to add/install some extra stuff! same goes for win server 08 sharepoint doesnt take over the server its added onto the server like any other application you install, just more bulky/taking up space and resources ;)
just for reference:
Microsoft made some great improvements with SharePoint 2010 and one of
significant one is that now you can run SharePoint 2010 on client
Operating Systems like Windows 7 Ultimate and Windows Vista with SP2.
Now the question arises if one should use Windows 7 or Windows Server
2008 for development? I would suggest Windows Server 2008 instead of
Windows 7 for developer machine OS because of the following reasons:
• Installation of SP 2010 on Windows 7 is a tedious task which
involves installation of additional patches, hotfix’s and
configurations. Also check the community content section for some
issue people faced while setting up SP 2010 on Windows 7. Follow this
link for Step by Step guidance on Installing SharePoint 2010
http://msdn.microsoft.com/en-us/library/ee554869(office.14).aspx
• In my opinion and learning’s from the past experience, it’s always
better to develop application on same software configurations which
will be used in the integration, test and production environments.
• SharePoint 2010 requires Windows 7 Ultimate version. There is not much
difference in performance and hardware resources utilization between
Windows 7 and Windows 2008(if some unnecessary services are turned
off).
• In a recent interview Arpan Shah, Technical Director
SharePoint, Microsoft, mentioned that there are some limitation when
developing SP 2010 applications on Windows 7 and Vista. Here is an
excerpt from his interview
•“It’s important to point out that there
are limitations when developing on the Windows Client, so we recommend
that developers use Windows Server for a full developer experience
across all the SharePoint Server 2010 features.” More information on
http://reddevnews.com/articles/2010/06/02/sharepoint-qa-arpan-shah.aspx
He didn’t elaborate on the limitations so not sure what the
limitations are.
http://www.praveenmodi.com/windows-7-vs-windows-server-2008-for-sharepoint-development/
for VM:
https://www.virtualbox.org/
install on win 7
http://spradip.wordpress.com/2011/01/08/installing-sharepoint-2010-in-windows-7-64-bit/
install on server 08 full guide
http://mosshowto.blogspot.co.uk/2009/11/installing-sharepoint-2010-windows-2008.html
install on server 08 r2 and SQL2008 R2 full guide
http://blogs.technet.com/b/steve_chen/archive/2010/02/10/install-sps2010-on-server-2008-r2-and-sql2008-r2.aspx