Going to agree with almost everything that has been posted.
Use Windows 8, will have less driver issues as Server OS products do not support video cards. HyperV is the same between them, since any desktop processor in the last 3-4 years certain has SLAT support.
Also, SSD is ideal, but for your uses likely overkill as the sole drive. Put a SSD in, and have the 5400 as a data drive, but since your VMs will be running off it, you should consider a 7200 for sure, even if you need to go smaller to afford it. Putting a 5400 desktop drive would be insanely bad idea, although there are some laptop 5400 drives which match 7200 drive access speeds, you would have to do some heavy research to figure out which ones though.
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