Nikhil,
1) I download the trial copy of Nexus 1000v and looking to install this, where can I get the trial license?
=> Nexus 1000V Essential edition is free and does not need any license to be installed. If you plan on running Advanced edition, on nexus 1000v comes with default 60-day advanced edition licenses on download from cisco.com.
https://communities.cisco.com/docs/DOC-31313
2) I was going through a video and it shows me that when the VSM is installed it gets installed as a virtual machine on any one of the hosts in the cluster, while installing the VEM you need to select both the hosts. Is the understanding correct from my end?
=> VSM (nexus 1000v control plane) VM can be installed on any host; and VEM is data plane component that you'll install on all the hosts that will be migrate to nexus 1000v dvs. Installer App that comes with Version 2.1 will do VSM and VEM installation for you.
3) Can someone give me some more links whick will kinda give me the insights into the very basic of this Nexus 1000v side?
=> Following links will help ;
https://communities.cisco.com/docs/DOC-31287
http://www.cisco.com/en/US/docs/switches/datacenter/nexus1000/sw/4_2_1_s_v_2_1_1/install_upgrade/vsm_vem/guide/b_Installation_and_Upgrade_Release_4_2_1SV2_1_1.html
Thanks,
Sonali
