I had a problem like this once, but Linux and not windows. Oddly enough, it happened because the server had a lot of RAM.
Linux, by default, dedicate 10% of memory for the disk IO cache. The server had 16 gigabytes of memory, so file writes would buffer up to 1.6G and then everything would wait for the disk to catch up. It was a fairly speedy disk array, but it could not keep up under heavy loads.
Anyway, in linux, you can tune how much memory is reserved for file buffers, and how frequently it will write the buffer to the disk. I ended up doing something like this in /etc/sysctl.conf:
Code:
vm.dirty_background_ratio = 1
vm.dirty_ratio = 1
vm.dirty_expire_centisecs = 50
vm.dirty_writeback_centisecs = 50
followed by sysctl -p to use the new values.
which means that it will reserve 1% of memory for file buffers, and it will write the buffers to disk every half a second. Obviously, you have to play with these numbers a bit to figure out what works best for you.
I have never used Microsoft Virtual Server, but given the description I have to wonder if file writes are taking too long. Have you benchmarked the disk performance to see how well it can perform? The iostat command can help you see how much io the system is doing.
Good luck!