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Vmware ESXI limitations

Hi,

Im new to VMwares ESXI and I am wondering whether to install it at a client site.  I was going to run virtual server 4 to host a win NT Virtual Machine but someone suggested running ESXI.

Any thoughts or comments welcome

We will also be running Windows server 2008 sbs on the hardware.
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arunraju, thats exactly right.  Hardware listed below. and can you expand on your last comment on the gotcha about vm's on sbs 2008?

HP ML350RX/XE
proccessor  Intel® Xeon® Processor E5420 (12M Cache, 2.50 GHz, 1333 MHz FSB)
QC 4GB Ram
E200i system
It contains 5 SATA/160GB 7200RPM Hot plug discs
HP Smart Array E200 128MB Controller
HP NC101T PCI-E 1 Port 1000T GB network adaptor
A7983AT Ultrium 448i Tape Drive

coolsport00 thanks for the info.  At the moment we backup to tape. Will the VM backup to our tape? Alot for me to study up on.  Anything to make it easy to get upto speed is appreciated greatly!

Kaar: ive checked out the comparison and one of the items says Active Directory Integration. Why would vmware want to intergrate with active directory?
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If you are planning to install SBS 2008 on Hardware and then install any Hosted Virtualization software (VMware Server / VMware Workstation / Oracle VirtualBox), then you will mess up the SBS 2008 Server Functionality.
coolsport00's assumptions would be the way to go forward (Installing a baremetal hypervisor such as VMware ESXi and then installing SBS 2008 as a Virtual Machine.
Right ive understood the vm ontop of 2008 coolsport00.  I dont supose you have the link to EE post.  The orignal post was comparing the 2 methods mentioned but if it cant be done the VMware ESXI method will be the way forward.  

Just so its clear in my head ill restate the backup question: so if the we have the VMWare ESXI installed and then Windows 2008 sbs as a guest operating system (VM), the traditional tape method backup will only work within the Windows 2008 vm? i should also mention we will be backing up using symantec backup exec.
Let me just rephrase the first paragraph. it didnt make sence :-(

Right ive understood the vm ontop of 2008 coolsport00.  I dont supose you have the link to EE post.  The orignal post was comparing the 2 methods mentioned.  If it cant be done using the VM server 4 ontop of Windows 2008 sbs, then the VMware ESXI method will be the way forward.  
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ill update the ticket shortly.
Sorry for the delay in updating this post.  I've been busy with issues.  The information you gave me helped me so much!! thank you!