Ok uninstalling the SVGA drivers make sense. I poked port 3389 through my firewall to the test network and I'm RDP'd into the 2008 R2 box. Been working on it for over an hour and not a single lock up, so that makes sense it's the SVGA drivers.

As far as "Officially" being supported, will this come down as a VMWare ESX 4 update or point release after the official launch of 2008 R2? This is an O/S we def. want to put into next year's budget.