Microsoft relents: Vista consumer virtualization ban lifted:
"It only took them a year longer than it should have, but Microsoft has finally relented and approved the use of Windows Vista Basic and Premium Edition in virtualized environments, for both 'consumers' and business users. Among other things, the change means that Mac and Linux users can now run Windows Vista in a VM without having to pay for the more expensive Business or Ultimate editions. This is a boon to anyone who needs virtualized environments for testing and development."
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