Customer Asks...Does Microsoft Support Virtualization?
We support MOSS 2007 SP1 and WSS 3.0 SP1 running Hyper-V (x86 and x64) with child machines running Windows Server 2008 under normal channels.
Virtual Server 2008 R2 SP1 with child machines running either Windows Server 2008 or 2003 and MOSS (RTM for Win2003 and SP1 for Win2008) x86 versions are supported.
In addition, we will also support 3rd party vitalization partners who are members of the Server Virtualization Validation Program (SVVP). The SVVP is an opt-in program for 3rd party virtualization partners. The SVVP is the official source to check 3rd party vendor virtualization partner certifications on MOSS. Note: please double check the SVVP site and the partner configuration that has be approved.
Many customers have asked me about VMWare. VMWare is part of SVVP. On September 3, 2008 they announced that their ESX 3.5 Update 2 (ESX3.5U2 x86) is the first hypervisor to be listed under the program, providing VMWare customers running Windows Server and Microsoft applications with cooperative support from both VMWare and Microsoft.
I have been using Hyper-V (beta --> production) for about 6 months and love it. I built a home machine and am running MOSS, SharePoint, SQL, AD, Exchange. You can find more information here.
https://technet.microsoft.com/en-us/library/cc816955.aspx
Microsoft's official support policy for Microsoft Software running on non-Microsoft virtualization hardware can be found here.
Microsoft SharePoint Team Blog (8/25/08) post on the subject.
More info (update 1/26/09)