I don't see why it couldn't, it seems to be supported as an app under virtualization see: <a href="http://support.microsoft.com/kb/957006/">http://support.microsoft.com/kb/957006/</a>
It works just fine. Both of my WSUS servers are VMs. Just make sure that you give the VM enough drive space.
Last Wiki Answer Submitted: September 16, 2009 10:14 pm by Denny Cherry64,520 pts.
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I have a virtualized wsus server and have no problems with it.
Yet