Yes, you can, and Dell tells you how (licensing is different for 2003, so this applies to 2008 and later).  You can even install OEM 2008 on the physical server, then install it as virtual server, as long as the physical instance is only used to manage the virtual instance (Hyper-V) ... the free/standalone Hyper-V or other hypervisor is not required.  Each edition (Standard, Enterprise, etc.) is licensed for a different number of virtual instances. content.dell.com/.../Documents~virtual-machines-oem-media.pdf.aspx www.dell.com/.../WS08_Media_VM_Final.pdf www.microsoft.com/.../confirmation.aspx
1) Get physical server which includes an OEM license of Windows Server. 2) Wipe drive and install a hypervisor, such as the standalone (free) version of Hyper-V 3) Install OEM copy of Windows Server onto virtual machine running on hypervisor  Is this legal, as far as MS licensing, and will there be any activation issues? I've scoured the internet looking for the answer and have determined that it is absolutely not possible. And I've also determined that it absolutely is possible. Basically, no one seems to know for sure. Anyone around here know for sure?
Run OEM Windows Server on hypervisor on same hardware?