InnoScript will run in a virtual machine. However in a virtual machine the trial version will not output the script file (.iss) and will not show all the dll/ocx/exe files that are included in the script nor will it include any information in the [Code] section.
The trial version will output the script, include all dll/ocx/exe files and the [code] section when running on a physical machine.
In the PAID version there are no limitations while running InnoScript in a virtual machine or on a physical machine.