as the old saying goes "eat your own dog food"
For us, we have 9 vCenter instances and all run as a VM, with the exception of 3. When that enviornment get's updated to vSphere4, the vCenter Servers will be VM's.
This setup is fully supported and works great. Plus you get the benefit of HA/DRS. I would suggest setting your restart priority to high for your vCenter VM.
Here's a good document as well
http://communities.vmware.com/docs/DOC-11197