VMware Server 2.0 - number of concurrent VM

I used VMware products for more than 5 years.  I'm a VMware ESX V3.5 Administrator experienced in a large corporate environment.  I used VMware Server very sparingly in recent years.  I have a supplier who provides consultation services to my organization.  Currently, we organize various configurations of virtual machines on our farm of ESX V3.5.  Due to performance issues, access our ESX environment (located in the United States) from their offices (in Europe), they propose bringing a VMware Server to host virtual machines in their offices.  Their proposed hardware configuration is a Server Windows 2003 R2 64 bit on top of two processors / 4 core server with 32 GB of RAM.  All customers would be Windows XP/VISTA/2003/2008.  They are suggesting that they could run 40 simultaneous virtual machines.  I know that the number of competitors in virtual machines depends on how they use them, but 40 looks like an extremely high number.

Can anyone other hand some opinions on what they feel would be a reasonable amount of virtual machines you can run on the proposed hardware platform?

My experience with VMware Server (on a Windows host), it's that performance degraded significantly when vCPU/pCPU approach 2.  I have actually started a thread on this particular issue and is still working on a resolution:

http://communities.VMware.com/thread/237723?TSTART=0

I have not yet confirmed that this problem exists on a Linux host, but I've heard other scary issues with Linux hosts:

http://communities.VMware.com/thread/200855?TSTART=15

Tags: VMware

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