A common question about Microsoft SharePoint products and technologies is “Can I run a production SharePoint environment in a virtual environment?” The answer is, "It depends.”
From the first kb article in the links below, Microsoft “has tested and certified Microsoft Office SharePoint Server 2007 and Microsoft Windows SharePoint Services 3.0 as supportable for use under Microsoft Virtual Server 2005 R2 and later versions of Virtual Server.”
- Hardware Virtualization support for SharePoint products and technologies
- 897615 (http://support.microsoft.com/kb/897615/) Support policy for Microsoft software running in non-Microsoft hardware virtualization software
- GOOD – SharePoint is supportable on Microsoft Virtual Server 2005 R2 and later versions of Virtual Server.
- NOT SO GOOD – VMWare is not on the supported list, however, please see the good Clink for a supported alternative (Virtual Server 2005 R2)