Nick,

If you're using windows 2000, you'll be fine technically (even though it's not permitted legally).  It looks like you'll run into a problem with activation on Windows XP though.  XP seems to be limited by WGA to the physical hardware that the OS sees (virtual under VMWare), which means that the vmware instance can be moved from machine to machine, but installing it twice (even on the same machine) is not allowed. 

Take a look at the Windows XP sp2 EULA [ http://www.microsoft.com/windowsxp/sp2/proeula.mspx ], which states:
1.1 Installation and use. You may install, use, access, display and run one copy of the Software on a single computer, such as a workstation, terminal or other device ("Workstation Computer"). The Software may not be used by more than two (2) processors at any one time on any single Workstation Computer.

I heard about some success with a normal dual boot installation, and being able to boot from the other install with vmware while within linux.   That might be what you need to do here. 

Also, look here for more info: 
http://www.vmware.com/community/thread.jspa?messageID=386018&#386018

Good luck,
-Darren
PS.  IANAL



On 10/6/06, Tek Budda <[EMAIL PROTECTED]> wrote:
Shawn wrote:
> VMWare server is free.  I believe Win2003 allows up to 4 virtual
2K3 Server With R2

> licenses... though don't quote me on that.  Not sure about XP.  The
> short of it for me is that the OS is running on the same box it was
> purchased for/with, so I don't see a moral issue in using the same
I believe MS actually allows this.  I was at a TechNet show recently and
they were talking a bit about R2 technologies and I asked a few
questions one on break.  I think I have also asked MS tech support a
similar issue and they seemed to indicated that it was legal to run an
OS like you are suggesting.  Maybe Barnaby can clarify that for us?

> license.  But that's just my view...  If you are doing this for business
> purposes, you *should* try to be as legal as possible.  In MS's eyes,
> that (almost) ALWAYS means buy another license.



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