Can the forwarder be installed on server core edition of Windows? Is thee any issues?
Yes, the Splunk Universal Forwarder can be run on Windows Core editions up through Windows Server 2012. We are still working on certification on Windows Server 2012 R2 though. Early 2014 timeframe.
We run it without issue. Be sure to make note if you need any PS scripts to run as it isn't pre-installed IIRC.