“Virtual Servers” are a technology that is rapidly gaining ground in the IT marketplace. I have attached a very good article on Virtual Server setup if you need to get a better understanding of the technology, as I did.
The original article can be found here.
http://technet.microsoft.com/en-us/magazine/2006.03.domore.aspx

The most notable thing it states is that “Microsoft Virtual Server 2005 r2 does not support USB hardware”. This includes our USB Hardware locks. Even if it could use the USB locks this set-up defeats the purpose of a “Virtual machine” in that they have to deal with a physical lock.

More testing and research is being done in this area.

For now,
“COADE does not support licensing on Virtual Machines or VLANs.“

As this technology becomes more prevalent and secure in the future this may change

I have a couple of Follow up Questions for you?
1. How many request or inquires are you receiving about Virtual Server installs?
2. Do you feel you are losing sales because of our inability to comply with these request?