a streaming server on a kvm virtual machine?

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My boss asked me to install and configure a streaming server for live videos.
My choice for the server is red5, an open source streaming server.
Do you think can I use a kvm virtual machine for this server or it's
better not to use virtualization?
My hardware is a HP Proliant DL580 G5 with 4 Intel Xeon Quad core
processors and 16G ram.
My operating system is debian lenny amd64.
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