Hi -
If this is a production environment, I'd definitely consider ESX server (*despite* the price). If it's just a home lab, you probably don't need to run 10 linux's at a time (or, alternatively, you probably won't be running them all in graphics mode, all at once).
IN ANY CASE...
There is no one-size-fits-all, "right" answer.
The only truthful answer is:
"It depends".
SUGGESTION:
1. Make sure you've got as much disk, as much RAM and as much CPU as you can get (80++GB free should be a good starting point; I'd go local disk to start off with).
2. See how many VM's you can run concurrently (whichever program you prefer: Xen or VMWare)
3. Take it from there
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