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P2V and New Install with same site code SCCM 2007

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I’m definitely a NOOB, so please bear with me.


I've inherited a SCCM 2007 R2 server which had two previous administrators and has already been through an upgrade from SMS to SCCM 2007. It is currently on a 1003 R2 server and is quite cluttered. I’m looking for an easy (yeah, I know this won’t be easy) way to build a new 2007R2 SCCM server onto a 2008R2 platform (preferably in VM). We currently are an agency acting as a child node from the Main Office of Administration. We also have a mix of Windows XP and Windows 7 machines (going through the migration process on those as well). We are relatively small (less than 600 clients) so I don't believe it will create any strain on a VM machine.


What I'm looking for is considerations in the following


- VMware vs. Physical (Is there any reason I should NOT migrate into a VM environment)


- The biggie, considerations on building a completely new machine but with the same site code (and collections). I can't really find any guides that make it easy (aka ... For dummies).


Any guidance would be GREATLY appreciated

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