In the past Microsoft has not been so forth coming with support for a virtualized environment. Now it is official, Virtual Server 2005 is now supported.
Support policy for Microsoft Dynamics CRM 4.0 on a computer that is running Virtual Server 2005
Microsoft Dynamics CRM 4.0 is officially supported to run on a computer that is running Microsoft Virtual Server 2005 in production systems. In addition, the Microsoft Dynamics CRM team is committed to the following:
To see the entire KB Artical click here