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That's right. I have a regular version of Snow Leopard installation disk. The error I get says: "OS X virtual machines can have only the OS X...
It looks like its cheaper to buy an old mac capable of running Snow Leopard, than it is to purchase a copy of Snow Leopard server to install it on...
It appears to not work unless I have the server version of Mac OS X v10.6 Snow Leopard. I have an original install disk for regular snow leopard...
I currently use Parallels to run Windows XP and some very basic windows software. Some day I might upgrade to Windows 7, but that's not important...