You can, in fact, run various server operating systems in Virtual PC, but there are a number of reasons why this isn't a great idea.
First, Virtual PC doesn't make use of more than one processor at a time for emulating multiple machines; it runs everything in a single thread on the same processor. If you're running multiple servers side-by-side on a machine with more than one processor, Virtual PC will shortchange you pretty heavily. Besides, with Virtual Server being free now, there's no incentive not to set it up and migrate to it.
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