I am writing a prototype ASP.NET web application that demonstrates the use of distributed caching for scalability purposes. In order to do this, I would like to set up a couple of load balanced windows servers to play around with. Having only my humble Windows 7 laptop (Win 7 Ultimate 64 bit, Intel Core 2 Duo 2.2 GHz, 4 GB RAM, 300 GB HD), will it be possible to create two virtual Server 2008 boxes configured in an NLB Cluster? I'm not particularly concerned with performance. I just need something to play around with on which I can create a couple of proof-of-concept applications.
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Yes you can, however you should drop some more RAM in the machine first otherwise your host OS won't have much RAM left for it.

mrdenny
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Also I would recommend only installing "server core". It has no GUI thus saving recources. – Tom Jan 23 '12 at 10:05