Let me get this straight.... they are claiming that Microsofts very own MSInstaller will prevent the install in a vm.
Since when did MSInstaller process give a flying hoopla about anything under the abstraction layer!!
As an update we've now had this service in production for a couple of weeks and the performance is great.
Even the Xerox technicians were impressed by the performance under ESX 3 and they were going to report this back to Xerox. Hopefully this could get them to eventually change their official opinion about running this service under VMware.