I was playing with the same idea of running FOG on a VM and allocate all physical resources to it. It seems like there’s some network slow down in the emulation layer and I couldn’t get more that 250MB/min. Where as on the same physical server if I did a raw Ubuntu 11.10/FOG0.32 install I could get steady 1.6GB/min speeds. I think you’ll find you’ll be much better off on a dedicated server even if it’s not a super beefy machine. I also messed around with Bonding mulitple NICs and got nothing but trouble unless you just want it as a hot backup. There are a lot more errors when trying to load balance and ended up not being worth the trouble.