Is it possible to run a windows gui client in a virtual machine hosted in a non gui linux?
How to set this up? and how to connect to such a machine?
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You can do this, if you have a third machine where you can run a GUI. For instance, I've setup Windows 7 running in Xen server (a bare-metal hypervisor with only ssh access to the server). I connected to it using RDP (remote desktop), from other Windows machines as well as using an RDP client on OS X.