I stumbled across this webcast that contains a 26 minute video explaining Microsoft's virtual licensing. When you need to spend a half hour just trying to figure out how you are getting shafted on licensing then it is time to look for alternatives.
Video: Licensing Microsoft Servers for Virtualization
Oh, and by the way, there are nice alternatives to VMWare also.
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My favorite sayings
"If you don't know where you're going, any road will get you there"
"Before you build a better mouse trap, make sure you have some mice"
"Before you build a better mouse trap, make sure you have some mice"
