Well there are some nice things about virtualization.
Since a virtual machine is just a file, you can save the file and have a "backup"
You can run other things off of the server, or instance you could have virtual desktops to go along with your virtual server on one box.
I have a client who has a linux server and a couple of 2003 service all on 1 machine. Of the 2003's one is a file server and one runs applications.
That being said normally you DON'T want to virtualize domain controllers, there can be some issues that arise from that and it's one more thing to break. If you have 3DC's on 1 virtual you lose your hardware redundancy.
In there case I would guess they are using the 2003 primarily as a file server and want the option of adding another server or virtual desktops down the line, and the ease of having to just back up the machine file.
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by: simsjrgPosted on 2009-06-11 at 13:31:06ID: 24606554
Really depends... Personally I love to virtualize anything I possibly can that I know will function well. It's great because moving it from physical server to physical server is effortless and in general recovering from failure tends to be easier. I tend to stay away from virtualizing Exchange and SQL due to heavy IO though direct disk mapping or iSCSI storage helps overcome this.
I would suggest getting your hands on Hyper-V Server and VMware ESXi and taking them for a spin.