If you are thinking about using VMware with Windows 2008 R2 server, you are going to want to eliminate the 100 MB System Reserved Partition at installation. If you are not using BitLocker on your servers, it will only give you headaches.
Below are the quick and easy steps to head off a potential headache.
1. Once Setup is loaded, press Shift + F10 keys at the first setup screen (which allows selection of language, keyboard and locale). A Command Prompt window will be opened.
2. Run Diskpart
3. Type in the following commands:
list disk (to show the ID number of the hard disk to partition, normally is Disk 0)
select disk 0 (change 0 to another number if applicable)
create partition primary
select partition 1
format fs=ntfs quick
4. Continue installation as usual. Remember to just highlight and select the partition just created when come to partition screen.