Lots and lots of things you can do with vmware. Last time I used the free server version, it only allows one snapshot per virtual machine. If you using it strictly for testing and/or development, I would recommend the workstation version as the things it can do with snapshots and branching snapshots are incredible.
VMWare server is nice to run some production machines one (we run a DC out in our DR site in a VMWare Server instance). During our DR Testing, we take a snapshot, then disconnect the server from our production network and onto our DR world and we have an instance DC that we can break in our DR testing.. when testing is done, we rollout the snapshot, reconnect the networks and it's back to being a live DC.
We also run a couple of VI3 Enterprise hosts and if you want to get into full blown virtulization, there is NO better product right now..
And, as Dwarf mentioned, if you are wanting to move your server from one host to another (and still want to run it in vmware on both servers), it's quite easy to just move the vmware files to the new machine and register it on the new machine. If you are going for a V2P (Virtual to Physical) conversion, that is possible as well, although I haven't done that conversion with a linux box, I have done it successfully with windows servers. You can also look at a P2V conversion (physical to virtual) in which case I'd recommend the VMWare converter product (they have a free version of that as well)