I have an existing SharePoint farm, I would like to make use of Self Service Password Recovery feature of FIM 2010, I would like to know if I can install FIM 2010 on my existing SharePoint farm or do I need to set it up on a separate server with WSS3.0 Thanks, appreciate any inputs/help

It can't be installed on existing farm as FIM is not supporting full blown SPS 2010. You can install FIM on Sharepoint 2010 Foundation (IMO recommended) or WSS 3.0.

The 2010 R2 registration and reset websites run directly on top of IIS (They are their own sites) and don't use SharePoint - unlike the actual FIM admin portal which uses either WSS or 2010 Foundation.Frank C. Drewes III - Architect - Oxford Computer Group