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Check out the two articles from Microsoft and let me know if doesn't answer your question.
http://www.microsoft.com/licensing/about-licensing/virtualization.aspx#tab=2
http://www.microsoft.com/en-gb/licensing/about-licensing/virtualization.aspx
Regards
Qazzafi
Does it mean that with one Enterprise Edition which is licensed to physical server can hold up to four Virtual machine and all these four VM's will be licensed with that one Product key applied to physical server, or we have to purchase another product key for registering that VM's and need extra licensing ?