Although I have addressed the issues of Microsoft's end-user license agreement (EULA) for Windows Vista in the past, I will provide you with an insight into the restrictions imposed by Microsoft for using Vista in Virtual Machines.

First off, neither Windows Vista Home Basic nor Windows Vista Home Premium is allowed to run as guest operating systems in virtual machines. The reason proposed by Microsoft as argument for this move is that home users fail to comprehend the risks associated with running virtual machines. "So Microsoft removes user choice in the name of security," said Michael Silver, Gartner Research VP.

In fact, Microsoft allows only Windows Vista Business and Ultimate to be installed in a virtual machine as per the Microsoft EULA. In fact, due to the volume license associated with Vista Business, this edition may be installed in up to four VMs concomitantly. But Microsoft has introduced additional restrictions against installing the same copy of Vista both on a PC and in a VM. It can be either one or the other but not both simultaneously.

For a home user that wants to run Vista in a VM, an alternative solution is to acquire the Business or Ultimate editions of the operating system for $300 or $399 respectively.

"Does paying $60 or $100 more mean the users understand the risks? We suppose that to Microsoft it does. Or maybe for the extra money, Microsoft just doesn't care as much. Is Microsoft using a EULA no one reads to educate? Should they be? We don't think so. What do you think?" asks Silver.