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Could you be referring to the Volume Shadow Copy Service (which is what VSS refers to)? If so, yes, Virtual Server 2005 R2 (SP1) will support the Volume Shadow Copy Service -- this will allow you to backup a running virtual machine without having to shut it down first. Some details on how this works by someone who tried to use it can be found at the 4sysops Website.
This was first published in January 2007
Virtualization Strategies for the CIO
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