A good (and recommended) way of seeing if your server is good candidate for virtualization is to use the MAP Toolkit http://technet.microsoft.com/en-us/library/bb977556.aspx

That will give you real nice analysis of how busy that server really is. If you run your analysis and CPU/memory/disk aren't being bottlenecked, you know your code sucks and you should get busy opitmizing. While virtualizing can potentially fix some headaches, it introduces more complexity that you may/may not be ready for.