I tried using the Lion disk image for a 10.6 64bit VM in VM Ware Fusion, but it didn't boot. My MBP wouldn't boot a disc with the DMG burned to it either, so I guess it just isn't bootable, although other people seem to say otherwise.
DoFoT9 is installing it as we speak. You need VMWare with Snow Leopard VM in order to do that it seems. I'll link this thread to him and ask him to keep you guys updated.