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Which OS X version can be virtualized (and using what software). Legally of course :).

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As far as I am aware the only version of OSX that can be legally virtualized is Leopard Server ( and I would assume Snow Leopard as its successor but don't know for definite). This virtualization must be done on Apple hardware as the host.

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Both VMWare Fusion and Parallels support Os X virtualization.

Mac OS X SLA gives you "license to install, use and run one (1) copy of the Apple Software on a single Apple-branded computer at a time."

While Mac OS X Server SLA says: "You may also install and use other copies of Mac OS X Server Software on the same Apple-branded computer, provided that you acquire an individual and valid license from Apple for each of these other copies of Mac OS X Server Software." I found same statement in all server SLA but don't trust me and check it for your version.

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I believe you can only visualize server edition. The end user version is not allowed because of the EULA. You need to use VMWare Fusion or Parallels which means the host has to be OS X. VMWare demoed this functionallity in early 2008 here.

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