This is great news. SWsoft's Virtuozzo is a fantastic tool that just doesn't get the press it really deserves. According to a report earlier this week in eWeek (emphasis mine):

During the company's road show here for partners, van Dijken said Microsoft has even partnered with virtualization vendor SWsoft to provide virtualization tools in WS2008 that can be used during a migration. "Virtualization is a great way to do migrations," said van Dijken, because virtualized environments can be used as temporary staging areas while data is being moved from one physical server to another.

If you're not yet familiar with SWsoft's Virtuozzo product, I'm in the process now of writing a book on it. That book, titled The Shortcut Guide to Selecting the Right Virtualization Solution talks about the differences between VMware's Hardware Virtualization and Virtuozzo's O/S Virtualization. Its a free download (registration required) and worth your time. Chapter 1 is currently available at:

http://www.swsoft.com/en/products/virtuozzo/lib/eb/