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Hyper-V On a two-socket quad-core server

I have a two-socket quad-core server (PE2950), the host operating system sees and can use all 8 Cores, yet i can only assign up to 4 Logical Processors per VM. Why? Would installing W2008 R2 Hyper-V help me?

Thank you.
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Both the server and the guest OS are W2008 Enterprise Ed. x64 1TB Raid 5 and 16 GB of RAM
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Oh, thank you. I was not aware of this. Is there any way around that?
Take a look here: http://virtualizationreview.com/Articles/2009/01/01/Microsoft-Citrix-and-VMware-in-Brewing-Battle.aspx?Page=2 

So no not really, I have not heard if Hyper V R2 is going to change this at all or not.


Also keep in mind not to rob your host, I'm not sure how many VM's you are running, but keep in mind a one to one ratio.

For example if you were running 3 VM's, you would want to only devote 2 cores to each vm, and leave 2 for the host.
The problem is that currently i'm running only one VM on that host and i want it to get the most resources possible.
It's a terminal server and has all the users' individual settings so reinstalling that on the host without virtualization would be a nightmare. or would it?
Well unless you are supporting a whole lot of users on that term server, I really don't see the point of doing better then 4 cores for the host and 4 for the vm.

If you wanted to restore it back to the host you could use an imaging product like Back Up Exec System recovery.

You could also add another virtual terminal server, and use term server brokering.

You are probably using 2003, but here is a good article on 2008 to stress the idea.

http://www.techotopia.com/index.php/Deploying_a_Windows_Server_2008_Terminal_Server_Farm_using_TS_Session_Broker