I have Windows Home Server installed, my home computers are connected to it and everything seems to be working well. Now, can I install Microsoft Virtual Server 2005 on the Home Server or will this break something? Only one way to find out without doing some background reading and that's to go ahead and install it.

Ready to install, OK.

So far, so good.

Finally, installed and no issues reported. Checking the Windows Home Server console suggests that all is well and the Virtual Server admin site appears to be working too. Next thing to do is add a virtual machine to the Virtual Server and see how that gets on.