I'd like to do some development on Eucalyptus, an open source project which provides an Amazon EC2 interface for launching virtual machine instances on a collection of privately managed nodes.

I'd really like to be able to do some of the development on my desktop, rather than having to deploy Eucalyptus on our shared local cluster each time I make a change to the source code. (Especially since there are a group of us sharing that test cluster).

Unfortunately, my desktop machine is a Mac, which won't run Eucalyptus natively. I do have VMWare Fusion, and it would be really nice if I could do my Eucalyptus testing inside a VMWare instance. The problem is, to test out Eucalyptus, it will have to launch (KVM or Xen) VM instances.

I've got no idea if it's possible to actually launch a KVM or Xen instance inside a VMWare instance.