I've noticed some confusion recently in the newsgroups I monitor about the requirements for running a DTM controller. First, let's be clear, a server or server operating system is not required. Also, a domain or domain controller is not required. I have a DTM controller that I use every day. It is running Windows XP SP2 and it is not a member of any domain. The clients run Windows XP for the safe OS and I install test operating systems from the ASI server which is running on the same system as the DTM controller. I also run the DTM Studio application on my controller.
The difficulty is in larger, multiple Studio deployments when no domain is available. If you run the DTM Studio on a system other than the controller, and you're using domain based user accounts on systems joined to a domain the DTM takes care of permissions for you. If you don't use domain accounts or systems which are members of a domain, it cannot. The result is that you will have some permissions problems. Note, these are not problems if you're running the Studio application on the controller, only if you're running Studio on a system different from the controller. The Runas command should allow you to resolve those issues, but a bug in the DTM is preventing it from working properly. We're working on resolving that now.
To summarize, the DTM does not require a domain or domain controller. It does not require a server OS. It will work in a scenario as scaled down as two systems, one controller and one client.
If you're running into any problems, please feel free to contact me directly. I want to help you. Also, stay tuned and I'll keep you up to date on the bug.