Yes, we have it running on VMware GSX server 3.0. To migrate from physical to virtual you need vmware's "P2V" product - check the vmware website for contact info.
try the syslog daemon from 3com:http://support.3com.com/software/utilities_for_windows_32_bit.htmDownload and install3CSyslog.zipI'm satisfied with this app for my syslog needs...