Virtual server 2005 is great product and as such is needed on CORE version of Windows server 2008. Actually CORE version of Windows server 2008 is Ideal Host solution for Virtualization.
As you probably know, virtualization will be part of OS with Windows server 2008 (RTM+180 days), so you may ask why do I need Virtual server on Windows server 2008 CORE version. The answer is - you don't if you don't want to, but if you want to - you may have it  . There is one more reason  Windows server virtualization will be available only on 64-bit platforms, so for 32-bit platforms we will probably use Virtual server...
If you want to install Virtual server 2005 R2 SP1 on your Windows server 2008 CORE version, all you have to do is to uncheck the last option in setup screen, and installation will be as smooth as it could get. In order to manage Virtual server on CORE version on Windows server 2008 you will have to install management web page on another box and connect to it. If you leave defaults on your installation of Virtual server on CORE box, remote management will work as expected.
There are some things you must have in mind when you install Virtual server 2005 R2 SP1 on CORE version of Windows server 2008.
You can not install Virtual server on a virtualized CORE machine. The reason is that Virtual server does not run in virtual environment (this has nothing to do with CORE version of Windows server 2008)
Virtual server 2005 R2 SP1 is not supported on Windows server 2008 CORE (not yet - after all Windows server 2008 is still in beta)
You can not run web administration on CORE version of windows (that is - if you don't read part 2 of this document 
You can run VMRC client on Windows server 2008 CORE, it works just fine
Let's dive in to installation step-by-step:
1. In your Windows 2008 server CORE, installed on physical box - not in virtual environment, start installation of Virtual Server 2005 R2 SP1
2. On Virtual server setup screen click on Install Microsoft Virtual server 2005 R2 SP1
3. On License agreement page click on I Accept the terms in the license agreement, and click next
4. Enter your username and organization (Serial number is already entered) and click next
5. On setup type page Choose Custom and click next
6. Chose not to install Virtual server web application and then click next
7. On Configure Components page leave the option Enable Virtual server exceptions in Windows Firewall checked and then click next
8. On Ready to install page click Install button
9. When the installation finishes, click Finish
Virtual server 2005 R2 SP1 is installed on your Windows server 2008 CORE box. Now we have to check if the service is started.
In command prompt type:
sc query "Virtual Server"
Virtual server should be started if everything went well during setup.
To access virtual server remotely you have to install Virtual server web application on some other machine.
In one of my next posts read How to install Virtual server web application on Windows server 2008 CORE .
Stay Tuned
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