For those of you who are unaware – Windows Server 2008 includes a new installation option – the ‘core’ installation. This gives you a stripped down version of Windows Server that is designed to just key server roles – with no Windows shell or other overhead. Windows Server 2008 core is great for inside of virtual machines, especially if you need a small virtual machine to run DHCP / DNS / AD for a private environment.
Windows Server 2008 core installations are straight forward under Virtual Server – you just use the Windows Server 2008 beta 3 installation media and select a core installation option. Indeed the only catch to be aware of is that to install Virtual Machine Additions you will need to manually start the installation by running \Windows\Setup.exe on the CD-ROM drive:
Once you have it up and running – you can learn how to set things up by reading this.