Eric Siebert is a Domino Guru and also a VMware guru, as well as the guy that runs http://vsphere-land.com, and he's written a great article on IT Knowledge Exchange about the realities of running Domino on ESX.
His article was driven by a couple of IBM support articles that discourage folks from virtualizing Domino, and he explains how to do it properly and Not Be Afraid.
IBM/Lotus Domino administrators and VMware Certified Professionals, when considering virtualizing Domino.
IBM Support Post 1: High CPU usage by router and poor performance of Domino under VMware
IBM Support Post 2: Poor performance of Domino HTTP server on VMware ESX 3.0 and 3.5
How to size Domino and Sametime systems for full production loads on VMware ESX Server
Ensure maximum performance from virtualized Lotus Domino servers
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