VMware esxi virtual CPU

I would like to understand about vCPU assignment.
For instance if I have PC with below spec and like create 2 VM with Win 7 and Win XP what's the best settings and why?

And same thing with server having below server spec like to create 2 VM:
1 x SBS2011 (Exch, file, print etc)
1 x Terminal server for 5-6 users.

Is hyperthreading going to make any differences? if possible please explain how the CPU, socket and cores count? I have read less core is better.

PC with:
2 CPUs x 2.2GHz
Socket: 1
Cores per socket:2
Logical Processors: 2
Hyperthreading: Inactive
NICs: 1

Server with:
12 CPUs x 2.6 Ghz
Sockets :2
Cores per socket: 6
Logical processors: 24
Hythreading: Active
Number of NICs:4
joyjohnAsked:
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
1 vCPU = 1 Core in the physical host.

It's recommended to use 1 vCPU for Windows XP, and 2 vCPU for Windows 7.

But, always start with 1 vCPU, and add aditional vCPU if required by the VM, for more performance.

Adding vCPU for the sake of adding additional vCPUs can slow a VM down, if the application on the VM cannot take advantage of additional CPUs. e.g. Exchange and SQL applications.
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
Also checkout Pages 15-25 of the

vSphere Resource Management Guide

which discusses CPUs.
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joyjohnAuthor Commented:
What would be my best selection/settings for settiing up 2 VM: SBS 2011 and Win 2008 R2 server for terminal server with this spec:

12 CPUs x 2.6 Ghz
Sockets :2
Cores per socket: 6
Logical processors: 24
Hythreading: Active
Number of NICs:4
RAM: 16 GB
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1 vCPU on both VM with 8GB/8GB RAM, how many cores?
can i select 2 socket on both VM?
What would be the best setting so that host can have required CPU, RAM etc thanks
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
Assign vCPUs and not cores.

VMs use vCPUs (CPUs). Cores has been designed for Licensing.

Difficult for me to advise on how many vCPUs you need in your VMs.

I would assign 2 vCPUs to your SBS2011, and I would try 1 or 2 vCPUs in your Terminal Server.

You've not got much ram in the host if you've only got 16GB. You will need a minimum of 4GB per VM.
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Andrew Hancock (VMware vExpert / EE MVE^2)VMware and Virtualization ConsultantCommented:
You may need at least 8GB-12GB for SBS2011.
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