Anyway, do you want to know if you can setup this? Well you cannot.
Why? Well in short:
- SharePoint 2010 will run on 64-bit systems only.
- VPC can run on a 64-bit host OS, but only supports 32-bit guest OS.
- Virtual Server 2005 R2: same story. It doesn't support a 32-bit guest OS.
I am really wondering whether Microsoft will sort this problem out, because running Hyper-V is not really an option. Hyper-V supports a 64-bit guest OS but it’s not an ideal platform especially if you do development on a laptop (as I do). I assume a lot of other SharePoint developers are running into this problem as well.
It is possible to use VMware, but I don't understand why Microsoft does not have a proper solution for this. They are coming with something that's called MED-V.
I didn't have had time yet to read it all in detail, but the basic idea is that those that are 32-bit or running Windows Server 2003 will not have an in-place upgrade option.
Well, that's the place I am standing, right now...