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Im looking to virtualize my linux server on Server 08. I remember reading somewhere that Server 08 has built in visualization capabilites, is this ture? and how do i use them?

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Yep, it's called 'Hyper-V' and here's a link (Clicky) to the wikipedia article on it. It works fine right now but is still a number of years behind VMWare, that will change though and plenty of people are using it in production or semi-production environments.

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