the 'product' is MSCS - Microsoft clustering services, which is at the Os level. You install SQL server on top of that. It allows a physical server to act as a standby for another. google SQL server clustering. As a starter see

http://www.sql-server-performance.com/articles/clustering/clustering_intro_p1.aspx

With a VM (virtual machine) you can cut an image of the server and quickly restore it to another VM.

Both mean a complete change in direction from your current set up and associated start up hardware costs.

Be aware that with SQL 2000 you require enterprise edition to be able to use clustering.