SCVMM (Carmine) currently only manages hosts with Virtual Server R2 installed — Carmine currently cannot manage Windows Server Virtualization/Hypervisor hosts (Viridian).

However the upcoming “SCVMM R2″, this will manage Hypervisor/Viridian Hosts.

Anyway, Brad has announced that a SCVMM R2 will be available ~H1 of 2008.  You can read more in his post “MSD evolution and leadership“, and a snippet is below:

For Windows Server 2008, new management packs/agents for MOM 2005 and SC Operations Manager 2007 will be available in H1. Along those lines, we’ll also have a release of System Center Configuration Manager (formerly SMS) and a second release of Virtual Machine Manager to manage virtualized workloads enabled with Windows Server Virtualization.

With the release of VMM, System Center can manage the physical and virtual assets. We developed this technology as, increasingly, customers told us they want a single, unified solution for managing both….