VMware and MS offer free server virtualization.

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IBMan

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Microsoft has recently released Virtual Server 2005 R2 available as download for free. (full product, not evaluation) Vmware has also released free beta software for their upcoming free Server virtualization, (aimed to replace their current GSX Server) Also full lisenced software, not evaluation.

VMware Server beta download
http://www.vmware.com/products/server/

Microsoft Virtual Server 2005 R2 Full Download
http://www.microsoft.com/windowsserversystem/virtualserver/default.mspx

if you ask my opinion, Vmware will probably win the war just because they've been in the business longer than MS, but you never know i guess, I've just always liked it more and always seemed to get more publicity than virtual PC or VMware Workstation.
 
Read about it a month or so ago. MS Virtual server used to cost $2000 two years ago now the very same version is free. MS still charges $40 for their "MS Vitual PC" product I am not sure what the difference between them is.
 
Virtual PC is where both the host(your physical pc) os and the guest os(the one that is running through the virtual machine software) are both running at the same time on your physical workstation. It is the same basic idea as VMware workstation which imo is much nicer yet more expensive.

Virtual Server 2005 and VMware Server is where you have a physical server, where the guest OS's are running on the server and you use your client program on a client system or workstation to connect to the server to control the virtual machines, thus using next to no workstation system resources(great for lower end computers that can't handle running both at the same time).
 
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