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SQL Server 2000 on a VM

Hi, As part of server consolidation, our IT policy deems that all new servers are VM Ware ESX environments (unless we can put a case together for exemption). After speaking with Microsoft SQL Server product expert, he mentioned that Microsoft doesn’t recommend running SQL server on VM Ware (or Virtual Server!)due to lack of Processor affinity (as well as fluctuating SAN performance). From our testing, there seems to be a slight performance decrease on average (compared to physical box of similar specs) as well as fluctuating performance with increased IO on the physical server itself What do you guys think? Does anyone have any documentation for/against? Thx

it depends on whether this is performance critical app or not, if not, then there are good reasons to use VM, such moving it from system to system as necessary.
Q. the ESX does not have a host OS right?
i am not inclined to use VM for a performance critical app, however, if i had to, then i would start with the VM that does not use a host OS
also, you might be on your own in performance issues, as MS might not want to get involved. i do have a kit that can calibrate various platforms, including VM overhead. it still requires 3-5 days onsite at this time
Thanks Joe, It is a performance critical system. The host OS is Linux (with client running Windows 2000/2003 server).