You can in fact run various server operating systems in Virtual PC, but this isn't a great idea for a number of reasons. For one, Virtual PC doesn't use 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 reason not to set it up and migrate to it.
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