Hi Andreas,
This will work as long as you are not using the Distribution Service to support installations where users do not have local administrator rights to their own workstations. You can only have one Distribution Service on one machine, so if you use this feature, then you need to keep your installation servers separate.
I used to have multiple versions of an installation server (6.40, 7.10, and 7.20) on a single system, and it caused me a number of headaches. Today I don't do that anymore. Instead I have four installation servers, in a Sandbox, Development, Quality Assurance, and Production type of setup. My Basis team (2 people, including me) uses the SBX installation server, the rest of the SAP Support team use the DEV one, our test group (power users, and such) are in the QAS one, and then the vast bulk of end users are all on the PRD setup. This allows me to roll out out patches and upgrades in a controlled and tested manner, and also to use central configuration files that are customized for the different groups (regular end users don't get SAPLogon entries for DEV, for instance).
Cheers,
Matt
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