1. Can I install a Vista image on a VM server with
host O/S as XP?
Yes, don't expect greatness. Server is not designed for interactive console use.
2. What if I lower the ram than the recommended?
Vista without enough RAM is bad news. 512MB as the minimum as long as you don't run anything significant.
3. Does anyone have a Vista image that they can put
up on mega-upload
Distributing any version of Windows is a violation of the EULA for most people. Perhaps if they give you a partially installed copy where you have to enter your product key. Something like that anyway.
BTW: You've posted half a dozen questions within a few minutes. Might I suggest you browse around the forums a bit. Many of your questions have already been asked in previous threads so you may be able to find some of your answers that way. Then when you're ready to post, describe what you're trying to do and with what products (Version of VMWare, OS, hardware, etc.) You'll get answers directed toward exactly what you're trying to do instead of general answers. Perhaps you'll get advice to use a different product or different procedure that you hadn't thought of.