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VMware server does run on top of a regular OS (it's available for Windows and Linux), but it's not as efficient as a hypervisor.
ESX/ESXi is a hypervisor that would prevent you from running an OS on the physical hardware.
The closest things to a combination of the 2 are either Windows 2008 with Hyper-V or Linux with a Xen kernel.
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JOHNADCO
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Posted April 29th, 2009 15:00
The product is not ESX3i, I think it's called VMware server?
It runs on a windows server and should work as you desire.