According to Windows Vista license terms
published by Microsoft, and reported by AppleInsider. Under the section of "Microsoft Windows Vista Home Basic" and "Microsoft Windows Vista Home Premium" (both page 11 of the PDF file), it says
USE WITH VIRTUALIZATION TECHNOLOGIES. You may not use the software installed on the licensed device within a virtual (or otherwise emulated) hardware system.
However, in page 13, which is under "Microsoft Windows Vista Ultimate".
6. USE WITH VIRTUALIZATION TECHNOLOGIES. You may use the software installed on the licensed device within a virtual (or otherwise emulated) hardware system on the licensed device. If you do so, you may not play or access content or use applications protected by any Microsoft digital, information or enterprise rights management technology or other Microsoft rights management services or use BitLocker. We advise against playing or accessing content or using applications protected by other digital, information or enterprise rights management technology or other rights management services or using full volume disk drive encryption.
Microsoft allows users to run Vista Ultimate under virtualization environment, but not Vista Home Basic or Home Premiere.
As [sdt=11996]reported earlier[/sdt], Windows Vista will be very expensive, at US$ 399, the cheaper alternatives of Vista does not allow to be installed under virtualization environment according to the license.
(Edit on 7 Aug 2007, correcting URL to Windows Vista license.)
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