Does anyone know if it is possible for a Windows Virtual Machine on a Windows host to take advantage of Single Sign on?
The objective is to only have to login once to the host machine and for the guest to automatically login against AD with this information.
Not the way you think, but yes. Firstly although it is theoretically possible to pass credentials to/from a virtual machine I am aware of no project working in this direction, much less having a usable product. The closest I know of would be pgina, which had entirely different goals.
However there is an easy way to do most of what you want using rdp. Enable remote desktop on the guest, configure the guest with appropriate networking so you can open a connection to the guest (bridged or host only would be easiest, If you must use nat, you will also need port forwarding or you can just give the guest two network cards) and after verifying that you can connect to the guest using rdp, run it in headless mode.
So things Have changed. Virtualbox now has autologin.