I was in the same situation not too long ago (before the last re-org. For once I was happy about it).
Luckily, I had a PC (monster of a machine) running Win2008 on which I ran Linux and Windows VMs. I also ran GNS3 which simulates Cisco routers. As a telco architect, I have the firm conviction that I have to keep my skills up to date. I won't be installing physical machines (sniff sniff), but I HAVE to be able to know what I'm talking about. I'm happy that I had my own personal lab to practice with, or I would have gone mad with boredom.
Bottom line is (finally), if you can, find a way to keep busy in a positive manner that will both benefit you and your employer even if he doesn't do squat with it. It'll beef up your r??sum?? should you choose to leave and you won't feel like your cheating your boss out of productive time (give me some slack here... ).
My setup is both inexpensive and under the radar (various lab policies ) and kept me busy when I needed it most.
Best of luck.
Keep Up with TechRepublic