>> Does it make a complete copy of the virtual machine or does it used linked clones, seems to take a long time to set up the test machines.

For now, when an environment is copied back and forth from the library, we do make complete copies. We plan to use linked clones (differencing disks) as an additional option in the future. For filing bugs, you can just use checkpoints and do not have to make complete copies. 


>> If I have Virtual machine manager 2008 installed, can I use my ESX servers as well as Hyper-V?

Yes, since Virtual Machine Manager (VMM) 2008 abstracts virtualization platform for Lab Manager. There will be certain limitation with ESX though.

>> Does it support multimonitor, can I open connections to each VM on different monitors?

Yes! You can launch mutiple instances of Lab Environment Viewer (LEV) and simultaneously interact with different VMs in different instances of LEV on different monitors.


>> Where are the images stored, I kind of got the impression that there would be VM going into TFS, which would be a really space issue!

The VM images are stored in library servers managed by VMM, not in TFS.


>> And finally can I create an environment add machines and then template all the machines as a whole?

Yes, you can templatize an already created multi-tier environment.