Run Server in virtual machine ( GOOD or BAD )

I am thinking of installing vmware server on my new server and run everything from inside it . Server is pretty good ( ATHLON 3800+ 2G ram ) and i am not going to be using full of its resources . I am thinking to take this step bcoz its a self managed server and there are chances i may goof up Run Server in virtual machine ( GOOD or BAD ) . So running server inside a vm ..is it a good idea or a bad one ? ( Its not a webhosting server but kind of a cpu intensive application server )

 

 

 

 

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