James, thank you for your answer.
I did install Server 2008 as a virtual machine on W2K12 and moved Amazing Charts onto it, so at least the mission critical stuff would work no matter what I do to the SBS.
Then I will try your above procedure to virtualize the SBS. Since I did test bare metal restore for the SBS before, I figure the worst I can do if I mess up virtualizing the SBS is to restore it to the the physical server and start over.
I guess in my mind I was going to do a bare metal restore onto the virtual machine, primarily because I have three physical drives on current SBS server and restore will bring back the old configuration. In using Disk2vhd, I guess I will be imaging the C: drive only. As long as the rest of the drives only hold data, I guess I can just copy them over later. I don't remember putting any programs on those two other drives.
I am still stuck on whether I should host the replica AC machine on the same W2K12 server that hosts the SBS. I guess I should be able to, since it's a small clinic with a few people for the SBS needs, and the replica is just sitting there replicating. I know the specs say W2K12 can host multiple VMs if I have enough memory (and hard disk space). I was more concerned about what people do in the real world. I will Bing it.
Thanks again.