We're still waiting on some new test equipment for building a 64 bit Hyper-V test environment.  Knowing that I could get a jumpstart by at least getting some VHD's read to go, I set about getting Virtual Server 2005 R2 SP1 installed on Windows Server 2008 Server Core.  With it's small memory footprint (~280MB in default config), Server Core is going to be THE host operating system of choice for Windows-based virtualization.

When installing Virtual Server into Server Core, make sure to uncheck the Virtual Server Web Application component.  Server Core doesn't support ASP.Net in IIS, and thus can't support the web-based administration interface.  Never fear however, as you can use VMRC Plus to manage your Virtual Server instance.

Once Virtual Server is installed on your Server Core instance, you'll need to make three configuration changes...

1. Create a firewall exception for Virtual Server: netsh fi add all "c:\program files\Microsoft Virtual Server\vssrvc.exe" "Virtual Server" ENABLE
   
2. Run the following VBS script to enable VMRC Plus connections to Virtual Server:
   set vs = wscript.createobject("VirtualServer.Application")
   vs.VMRCEnabled = True
   vs.VMRCAdminportNumber = 5900
   vs.VMRCIdleconnectionTimeOutEnabled= false
   vs.VMRCXResolution = 800
   vs.VMRCYResolution = 600
   
3. Run the following VBS script to allow a specific AD group to connect to Virtual Server:
   Dim ace
   set objVs = wscript.CreateObject("VirtualServer.Application")
   Set objSecurity = WScript.CreateObject("VirtualServer.VMSecurity")
   
   set objSecurity = ObjVs.Security
   
   Set ace = objSecurity.AddEntry("domain_name\Domain admins",vmAccessRights_Allowed)
   ace.WriteAccess = True
   ace.ReadAccess = True
   ace.ExecuteAccess = True
   ace.DeleteAccess = True
   ace.ReadPermissions = True
   ace.ChangePermissions = True
   
   ObjVs.Security = objSecurity

Install VMRC Plus on your management workstation.  Make sure to run VMRCplus.exe as a user within the group you specified in Step 3 above.  Finally, simply make a connection to your Virtual Server box, and you are off to the races.

Special thanks to Arlindo and Virtual PC Guy, both Microsoft bloggers, for their help in getting this config up and running!