Here’s my MOSS development VM environment;

1. VMWare Server 2.0 / VMWare Fusion / VMWare Workstation (installed on local machine)
2. Microsoft Windows Server 2003 SP2
3. Daemon Tools
4. IE7
5. .NET 2.0 / 3.0 / 3.5
6. Microsoft SQL Server 2005 SP2
7. Office 2007 (with InfoPath)
8. Microsoft Office SharePoint Server 2007
9. Microsoft Visual Studio 2008
10. Visual Studio 2008 Extensions for WSS 1.3
11. VSTO Visual Studio Tools for Office
12. WSS SDK
13. SharePoint Server 2007 SDK
14. Sysprep for Windows Server 2003 SP2