VMware Server 1.0.8 runs beautifully on Window 7. Installation needed me to add ISS from Add Windows Components in Control Panel and that was a cinch.
The hardware that was setup for Windows XP Pro is great and I was a bit surprised there's no GPU selection from the hardware configuration. After installing XP I found there were drivers needed for the GPU and tried to use the USB drive to install them but I kept getting an error message to contact VMware Support. I'll just have to download the drivers and see if they install. Copy and paste from Windows 7 to the Virtual Machine doesn't work even though I've enabled it.
So I think it will take a bit of working on but it seems to work great so far, especially once I installed the VMware Tools. Here's a screenshot:
I may give the Virtual PC based XP Mode a try to see how that compares. I was a bit surprised to see it was available for Windows 7 Ultimate and not just for the Enterprise edition
"The great majority of mankind are satisfied with appearances, as though they were realities, and are often more influenced by the things that seem than by those that are." - Niccolo Machiavelli