[HAL9000]

I'd never encourage anyone to violate Microsoft's license agreement - but how would MS know if someone was running the less expensive versions in a virtual environment?

Also, it's not clear whether Microsoft's restrictions on the less expensive versions constitute a violation of their antitrust agreement. They agreed to cease their anti-competitive restrictions on boot-loaders as part of the settlement. This sounds like a similar anti-competitive tactic.

[MSM Hater]

I'd never encourage anyone to violate Microsoft's license agreement - but how would MS know if someone was running the less expensive versions in a virtual environment?

I read somewhere that Vista was to have a built-in "phone home" feature so Micros**t can verify that it is a legitimate purchase. I remember some outrage at this and it's possible that the feature was deleted or at least well-hidden.