I have Vista and Ubuntu currently dual-booting. I want to test out server 08. Do I just shrink volume in Disk Management, format NTFS. Boot server 08 from Cd, install to the new partition. I am not familiar with dual booting with NOS's so that is why I am asking. Or is there any other factors I should be aware of?

Shrinking it should be enough, as long as you have an empty partition and select it during installation it'll be formatted.