Its not a VMWare issue though. Its more of a Microsoft issue (i reported this to technet forums too) as its not activating with Microsoft. Just posting this in case VMWare is aware that Microsoft is building their future products to purposefully block VMWare from hosting it which might be the future "knife" to force people to start using Hyper-v for Server 2012 R2 and future server products since they won't activate on VMWare. Again, it installs OK so its not a VMWare issue........just won't activate. I was curious if anyone else has run into this and if there is a workaround to trick Server 2012 R2 to think its on a Hyper-v product.
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