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Have you considered VMotion?
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is it Automatic? &nbsp;How would it work?
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HINT HINT (cannot say more), wait until end of August 2012 (VMware vSphere 5.1!)
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HINT HINT (cannot say more), wait until end of August 2012 (VMware vSphere 5.1!)

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@coolsport00: under NDA our lips are sealed tight!
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@coolsport00: under NDA our lips are sealed tight!

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I am looking for a redundancy solution for the VM that runs the Application manager, kind of like a domain controller for the application environment. &nbsp;The issue is its designed &nbsp;only to run on a single server.<br />
Currently I have it on a FT VM. &nbsp;The problem is 1 - I cannot add a CPU, and 2 - if the VM crashes the FT will crash also.<br />
So, I'd like to experiment with MS Clustering solution. Would that work? I don't think the App is a Cluster-aware. &nbsp;<br />
What other solutions I can implement for this?
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I am looking for a redundancy solution for the VM that runs the Application manager, kind of like a domain controller for the application environment.  The issue is its designed  only to run on a single server.
Currently I have it on a FT VM.  The problem is 1 - I cannot add a CPU, and 2 - if the VM crashes the FT will crash also.
So, I'd like to experiment with MS Clustering solution. Would that work? I don't think the App is a Cluster-aware.  
What other solutions I can implement for this?

Availability solution for VM

Windows Server 2008 and Windows Server 2008 R2, based on the Microsoft Vista codebase, is the last 32-bit server operating system released by Microsoft. It has a number of versions, including including Foundation, Standard, Enterprise, Datacenter, Web, HPC Server, Itanium and Storage; new features included server core installation and Hyper-V.

Windows Server 2008

Disaster Recovery is the planning for and creation of policies and procedures related to the resumption or continuation of an organization's functions following a catastrophic event. The term is most frequently used in relation to failure of networks, but DR preparations also include other business systems and personnel considerations.

Disaster Recovery

VMware, a software company founded in 1998,  was one of the first commercially successful companies to offer x86 virtualization. The storage company EMC purchased VMware in 1994. Dell Technologies acquired EMC in 2016. VMware’s parent company is now Dell Technologies.

VMware has many software products that run on desktops, Microsoft Windows, Linux, and macOS, which allows the virtualizing of the x86 architecture.  Its enterprise software hypervisor for servers, VMware vSphere Hypervisor (ESXi), is a bare-metal hypervisor that runs directly on the server hardware and does not require an additional underlying operating system.