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Vm Server 2008 On Whs 2001

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We have a dedicated WHS 2011 used for business as well as personal applications. I would like to try install Server 2008 as a VM on the dedicated WHS 2011 in order to test, and hopefully use, the business functionality of Server 2008. We own a copy of Server 2008. I would like the WHS 2011 to remain functional throughout the installation process of the VM. My questions:

1) What visualization software is most appropriate?
2) Does the setup I described above make the most sense (VM Server 2008 on existing dedicated WHS 2001)? If not, what setup makes the most sense? (Please bear in mind I would like the WHS 2011 to remain functional throughout the process.)
3) Other suggestions/pointers as to how to approach this?

Thank you in advance for your commentary.
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