From what I've been reading, the Enterprise Server of Win2k3 along with MS Virtual Server 2005 allows upto four Windows 2003 Virtual Machines.

I am thinking of getting a server from Softlayer with Win23k Enterprise and running 2 VMs on it. Question is- where do I get the licence to install the OS in the VM.

-a

You might be able to get Softlayer to give you a copy of the media or try to clone another box. Other choice is find an SPLA provide who can sell you a license

You just need a copy of the media and a VLK, as long as you do have a license for Server 2003 R2 Enterprise you can just as easily P2P a copy of the media and use it legally. I doubt the likes of Softlayer would hand over their media and VLK's to customers since the company whom the key belongs to is responsible for keeping it secure / piracy issues arising as a result.

Dan