I have a site of 20 users and plan to install NOWS on a single new server, then migrate from SBS 2003.
In some months time we'll be setting up another server - Win 2008 hosting a dotnet application with MS SQL server.
At the moment I am thinking of creating a VM on the NOWS server to accommodate this new Win2008 box.

Is this feasible? Is a NOWS box a reliable VM host? Or is this a hari kari move?

If feasible, what the best option for the VM host software? KVM or SLES's XEN?