Not everything that revolves around Virtualization is good - point in case: the software known as Microsoft.Windows.Vista.Local.Activation.Server-MelindaGates.

This VMW virtual image fools Microsoft's latest operating system (Vista) into believing that it is contacting a Key Management Service server (KMS).  When Vista tries to access the KMS, it connects to the Virtual Machine and within seconds the operating system is activated and fully functional even though it is a pirated copy.

As of now, Microsoft has yet to release an update that will fix this hack and assist Vista into knowing that it is not contacting a real KMS.  It really makes you wonder how soon the hackers will release and update to their VMWare image after Microsoft releases their update.

The complete article is on on the vmblog's web site.