[Update, Fri. Oct 13, 11:00 am: The initial version of this story erroneously mischaracterized the way Microsoft's Vista license applies to user of the OS in a virtual machine, stating that there was a blanket ban in effect. This is incorrect; we regret the error. The updated version of this story removes all references to a VM ban, including a change in the headline, removal of a virtual machine reference in the lead paragraph, and the deletion of the fifth and sixth paragraphs of the original story.]
That's interesting, because the PDF that the site references, which is a download from microsoft.com, says for both editions of Vista Home (am I the only that thinks two home versions is psychotic?):
4. Use with Virtualization Technologies: You may not use the software installed on a licensed device within a virtual (or otherwise emulated) system.
For Ultimate, it says that you can, but you cannot use anything protected by MS DRM.
How am I misunderstanding the paragraph from the PDF?