Hi Andrew,
Cloud is a broad term and different clouds work differently. Like the Windows Azure cloud, we cannot currently run on because you have no file system storage for user uploads and other files written by the system.
The thing you posted sounds like they are giving you a complete virtual machine hosted in the cloud. If they offer Win 2008 server as a cloud hosted virtual machine that would be virtually no different than a real physical server from a management perspective. In that case you could remote desktop into the machine and configure it as you would any Windows server, install Sql Express on it etc. The way they ensure "100%" uptime is that they can move the virtual machine from one physical machine to another while it is running without interrupting it so if they need to take down a physical machine it can be done by moving all the virtual machines to other physical machines. In this case 100% uptime really means their systems won't take your machine down, but really in this kind of scenario since it is really your own virtual windows machine there won't really be 100% uptime because now and then you will have to get windows updates and reboot the vm just like a real machine.
So, mojoPortal can run fine on a virtual machine with windows server os, but it can't currently run in all clouds, like it can't run on Windows Azure (though it can use sql azure for the database).
Hope that helps,
Joe