Vista EULA forbids virtualization
TUAW reader Rae pointed us to this post on the Parallels Virtualization blog, which confirms details of the end user license agreement that came to light last Autumn. Microsoft's EULA specifically forbids using Vista Home Basic and Vista Home Premium with virtualization technologies.
This means that if you want to run Vista on Parallels, and want to keep within the terms of the EULA, you'll need to buy either the Business or Ultimate versions, whose EULAs allow for virtualized use. After public outcry, Microsoft did change the EULA at least once before to allow users to deinstall their version from one computer and reinstall it on another. Hopefully, a similar grass roots movement will encourage Microsoft to rethink their stance on virtualization for their lower-end Vista releases.
