I've read a few horror stories about using VDR/VSS to backup domain controllers, so am approaching this cautiously. I have built a 2008 R2 VM which will be promoted and take over as DC of an SBS 2003 domain once the relevant schema/mode changes have taken place.
To be on the sage side for backups I have opted for a full ntbackup (including system state) of the server to a remote share. Should I also use VDR to backup the VM, and if so, should/shouldn't I use VSS?
I've recently upgraded our backup appliance to VDR 2.0 and use VSS to backup 17 VM's without issue each night.