Many people at Artinsoft use VMWare for their Virtualization needs. This quickly became a hassle as the VMs that they were using that I needed could not be used in Virtual Server. I just found out through this article that there is a new tool called the VMDK to VHD file converter.
I have not yet tested the tool, but soon I will be converting all the RedHat VMDK to VHDs and running them on our Virtual Server R2 SP1 (which fully supports Linux!).
You can find the official link
here, download it and let me know if you run into any issues!