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I am going to start dabbling more with VMware. I recently purchased an HP Proliant DL360 G6 with 12GB RAM and 2 250GB HDDs. Do I need to add more RAM? What would be the best way to install VMware EXSi? What would be a good starter server OS?
Instead of wasting HDD space for the hipervisor, buy yourself a 4GB SD card. The ProLiants have an SD card slot built onto the motherboard for this purpose.
I'm personally running the same server with ESXi 5.5 Update 2, 68GB of RAM, and 8x 300GB drives. The processors are 2x Quad core E5540 @ 2.53 Ghz.
As for a starter OS, just set up a basic copy of Server 2008 R2 or Server 2012 R2 and make it a domain controller.
I'm also running vCenter Server to manage the host. It makes life easier.