Like mathboy3, I too received Snow Leopard Server 10.6.3 yesterday and I made an ISO Image as that has always been my MO with virtualization. I maintain a Server with ISO Image of all OSes and Applications that get install in the VM's and actually install from ISO Images on Physical Machines as well from the Image Server. Anyway to the point, I had no issues installing Snow Leopard Server 10.6.3 in VMware Fusion using an ISO Image that was created using Disk Utility. I selected the Optical Drive itself and selected "DVD/CD master" as the Image Format and "none" for Encryption.
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