Now, as you ask..."can Server run on W2K7?"...the direct answer to that is more than likely, but you could run into network connectivity issues and other anomalies. I've assisted others on some posts that have had issues running Server on OS's other than an 'official' Server OS, yet some have had it to work (and swear by it working on other OS's). So, it's really up to you to try it or not. The installer won't error out on you or say it's not supported; the Sys Req's are noted in the Guide:
http://www.vmware.com/pdf/vmserver2.pdf (pg. 25-26, specifically the NOTE on pg. 25).
~coolsport00
