Don't know of any distro's exactly as you describe, but I think there are a few options.
First - what sort of virtualisation software? I grabbed a livecd from Xen's website which had a cut-down Debian + Xen setup on it and runable from the CD. Would be pretty easy to just copy it to a partition and install a bootloader, although if your CPU doesn't have VT extensions, you'll only be able to boot Linux/BSD guests OS's.
Probably easiest would be to install Ubuntu server with no optional components and yum install vmware-server (grab a free license key from vmware.com); you don't even need X if you install vmware-console on another machine and setup the VM's over a network.