I'm using VMWare Fusion with my Boot Camp partition. Are there any problems with installing Windows 7 Updates through VMWare Fusion, or should I boot up into Boot Camp in order to install these updates?
It's been a while since I've used Windows, but I seem to recall that Microsoft does provide driver updates with the Windows Update, and whether or not you get the update may depend on the hardware that Windows detects you're running. To be on the safe side, I'd suggest running Windows Update both virtually and natively.
I have used Windows updates through BootCamp with no problems.
As for drivers I think they all come from BootCamp so the Apple update would do these and I would do that from BootCamp.