I've had some serious performance issues using virtualised SQL servers for database heavy applications (ETL development). See this Stackoverflow post for a run-down on my experiences and the outcomes of digging into the underlying issues.
Essentially a DB heavy process like ETL will thrash the I/O (more sequential operations, so it isn't waiting for disk seeks as much as an OLTP app) and Translation Lookaside Buffer (large data sets), both of which are very slow on a naively virtualised image. The posting links out to this whitepaper on AMD's site (written by a vendor so take with a grain of salt) which (in between extolling the virtues of AMD's new Opteron chips) talks a bit about the underlying issues.