Timothy Westman-Barth wrote:
I specifically remember hearing, or reading, that OS X Lion would support OS X in a VM, as long as that copy of OS X would run on that computer normally.
My question is, how do I do this...
You would get one of the virtualization products like Parallels, VirtualBox or VMware Fusion. I do not know the official status of running Lion as a VM in Parallels or VirtualBox, but Fusion will require the upcoming Fusion version 4 (or whatever it will be called.) The current Fusion3 does not support Lion as a VM.
...and will it work with running Snow Leopard in a VM, or does the VM OS also have to be Lion?
Only Snow Leopard Server is allowed as a virtual machine, so long as it's run on Apple hardware and has an appropriately purchased license. (Same for Leopard Server.) "Desktop" versions of Leopard and Snow Leopard are NOT allowed as virtual machines. And versions of OSX prior to 10.5 are not allowed in virtual machines.
Many people will say their interpretation of the Leopard and Snow Leopard EULAs will allow this. However most of these people are not lawyers and not specialized in this area of software law. The current official statement from VMware was that it is not allowed. VMware being the virtualization industry leader, I will respect their interpretation. (Although I do not agree fully with it.)
There also appears to be a small wording clause that the Lion VM also has to be run on a Lion host, but I'm trying to get some clarification on that.
So summary: Lion as VM = ok. Leopard & SL as VM = Server only.