Can I run Windows 7 Ultimate in VirtualBox on a Windows Home Server host?

Question

I'm considering migrating from my very noisy and large MythTV box to something much smaller and quieter, like the HP MediaSmart Server LX195. To accomplish this I would need to install a virtual machine that runs Windows 7 Home Premium or Windows 7 Ultimate on the Windows Home Server box. Tuner drivers are not a problem for me because I already have an HDHomeRun, and playback shouldn't be an issue because I have an XBox360 to play back all of my content. Dedidcated drive space for the VM shouldn't be an issue because I have a Drobo with lots of space. However, coming from a Linux and Mac background I've got some questions about this solution:

1. Can I install a virtual machine host software such as VirtualBox or VMWare Player on the Windows Home Server machine?
2. When watching content on the 360, will I still have access to the plugins. For example, if I install My Movies will that functionality be available on the XBox 360?

Answer 1

1) Yes you will, providing you don't want to run a 64bits VM on a 32bits host 2) Don't expect VMs to run anything graphics related on a VM

Answer 2

1. yes

2. you want to run Media Center in a virtual machine? i think not! :)

here's an article from someone who tried to feed an xbox 360 via Vista Media Center with My Movies in MS VPC:

...and this is where my fun ended. Media Center instantly became entirely unresponsive. Like, full seconds between putting your mouse cursor over a menu option and having the menu option highlight in preparation to be clicked. Removed the DVD from the drive and things became mildly responsive again.