well, according to this article, Microsoft explicitly defines licensing in a virtualized environment:
http://blogs.zdnet.com/Bott/?p=157
I was able to install, use my original license key without activation, and everything works great.
Also, see:
http://www.itwire.com/content/view/9757/53/
"Unless you?re running the Windows Vista Enterprise Edition, which includes a license to run up to four additional virtual instances of Vista on a single PC, other Windows operating systems you might want to run will need to be fully licensed copies of Windows, or you will run into Windows Genuine Validation copy-protection issues that will ultimately prevent you from running Vista or XP properly ? or at all."
Also:
http://www.microsoft.com/licen...sa/benefits/vista.mspx
Four Instances of a Virtual Operating System
When your organization is using mission-critical applications, it can be costly to rewrite them so that they work with a new operating system. Virtualization technology is one way you can reduce the costs associated with upgrading your operating system. Virtualization enables you to run multiple operating systems on a single computer and switch between them as necessary. To use virtualization, you need a license for each virtual operating system, and these are typically charged separately.
However, Windows Vista Enterprise includes the rights to four virtual operating systems for no additional cost. Now you can continue to run your applications in their current state on their original operating system while still taking advantage of the latest improvements and enhancements in Windows Vista Enterprise.
I assume Vista Enterprise and Vista Ultimate are the same???