I was asked this a few times when i was at TechEd last week and just thought this would be a handy little post.
A couple of topics in the VMM 2007 TechNet Library may help you in converting them Windows 2000 Physical hosts to Virtual ones:
· "Converting Physical Computers to Virtual Machines in VMM (P2V Conversions)": http://go.microsoft.com/fwlink/?LinkId=98831 (Provides an overview of both the online and offline P2V processes, with requirements, FAQ, and Troubleshooting.)
· "How to Convert a Physical Server to a Virtual Machine" topic in VMM Help: http://go.microsoft.com/fwlink/?LinkId=98991 (Step-by-step procedure for performing a P2V conversion.)
I know the content team is writing the P2V updates for VMM 2008, but these processes should help you get your bearings. Hope this is helpful.