Server virtulization with Microsoft Hyper-V is the most simpliest way and also it reduces the cost as well. Hyper-V allows us to minimize the deployment cost of server farms as we deploy server farms inside the Hyper-V, which means you will be able to reduce hardware and software costs for those servers. For all of you I have posted the links below which will help you on Server Virtulization

Installing Hyper-V

Creating a Virtual Machine
Windows Server 2008 Hyper-V Demo on Quad-Core Intel Xeon 

Microsoft Hyper-V: High Availability Storage Solution from SANRAD

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