Yes but 600mb on a windows server doesn't give you a lot of room to play with. I'm struggling to think of a use-case but I'm sure there are many.

Yeah, they're not going to run SQL Server. It's plenty for just serving up some simple stuff. I use the small instances mostly for testing stuff out with different configurations and running small short-term side projects. These will work perfectly for that.

Do those have VNC support, though?

Could you pay $14 and have a remote IE instance that the whole team can access no matter where they are, instead of using up your precious local memory on every machine?

They support Remote Desktop, but since they're Server 2008 the only IE instance you could run on it is IE8.

You could probably use one of the hacky solutions like IETester (http://www.my-debugbar.com/wiki/IETester/HomePage) for older versions.

I'd much rather run IE locally in a VM though.

Local memory is precious in these days of mid-range machines with 6gb+ ram (win xp in a VM doesn't take that much ram)?

This seems like an excellent opportunity for hosting Server Core, particularly as a front-end web server.