True, though you can still use VMWare Converter [1] image your OEM install and then run it in a vm. You just get the constant reminders that Windows is not authentic and you should activate it.

1. http://www.vmware.com/products/converter/

Oh wow, I had no idea.... I'm using the license that came with my HP laptop to run Windows 7 Home Premium in a VM on my Ubuntu install.

They never said a word when I called to activate it.

Interesting, didn't know that.