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If you install the Hyper-V role on a Windows 2008 R2 Server running Active Directory (on the host), will Microsoft provide support? Is this MS approved or will they say this configuration is not supported and hang up?

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I don't think it's unsupported as much as it is unrecommended. It is a best practice for Hyper V to be installed on a server with no other roles enabled. See the following link:

You might also want to check this out:

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Works, is supported. If it would not be supported MS would have to block it or provide a warning when you install both roles.

it is not recommended because in LARGER installations you WILL possibly run into performance issues.

I have 2 servers like that, works like a charm.

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I don't think Microsoft always blocks unsupported setups...Hyper V installs on SBS without a warning but that is officially unsupported – Jason Berg Jul 30 '10 at 6:26

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