Both VMware and Microsoft support Red Hat Enterprise Linux (RHEL) 2.1 (update 6) on their virtualization platforms....
For example, see Microsoft's Web page, Linux Guest Support for Virtual Server 2005 R2. Since the primary technical requirement is that the guest operating system (in this case RHEL 2.1) must support the virtual hardware configuration, you shouldn't have any problems.
Keep in mind that installing OS-specific drivers (usually provided with the virtualization product) can help increase overall performance.
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