Like the difference between ESX Server and VMware Server, Hyper-V and Virtual server have similar differences. Hyper-V is a type-1 hypervisor where Virtual Server is a type 2 hypervisor. Virtual Server requires that you first host a Windows operating system to load it.
Hyper-V is meant to be a higher performance commercial virtualization platform with a centralized management platform and 3rd party add-ons. Virtual Server, on the other hand, is a free virtualization platform meant for the desktop or for small-scale server virtualization solutions.