Enable Hardware Virtualisation (This is only applicable if you have Windows Server x64 and good 64 bit hardware - we recommend a Quad Core CPU and 3 to 4GB RAM - Much more if you want to run production systems on it - see the Microsoft guidlines for RAM etc in the Hyper-V documentation))
If your Server 2008 is an x64 machine with hardware virtualisation built in (which it should be these days!). This means you can run the new Hyper-V. If you aren't sure what this is you can read about it here:
http://www.microsoft.com/windowsserver2008/en/us/virtualization-consolidation.aspx
Installation of Hyper-V in Windows Server 2008 x64.
To complete an installation of Hyper-V follow these steps (Skip this if you don't want the ability to run other Operating Systems inside your new Windows Server):
Download this update and install it on your Server (You may have to reboot after installing this update - please make sure you do!)
http://www.microsoft.com/downloads/details.aspx?FamilyId=F3AB3D4B-63C8-4424-A738-BADED34D24ED&displaylang=en
Now Start the Server Manager

Once the Server manager has loaded click on Add Roles under the Roles summary

You will be presented with a Before you Begin page, just click next.
Check the Hyper-V role box and click next
You then get a box with a few review notes, just click next.

Next is the Create Virtual network page. You could check the Network card that provides you with Internet access here and this will allow your Virtual Pc's internet access. If you don't want them to have internet access, leave it unchecked for now. Then click on Next again.
Then just a review page - click Next
You now have to restart the Computer for this installation to complete, Just click Yes and restart the box.
After the computer is restarted the Hyper-V setup will need to complete, just wait for a moment and once completed click on Close to finish the installation.

Thats most of the installtion completed. To Create Virtual Pc's and start to configure other Operating systems etc. Go to the Server manager again (as descibed above) and expand Roles - Hyper-V - Microsoft Hyper-V Servers and then Select your computername. You will get something like this (but without the Virtual Pc's already shown in my config).

Now you are ready to go - running Virtual machines on top of a Windows OS has never been so good!