First, a caveat. This is not supported. Most of what I am about to talk about is not supported. Feel free to use this information, but do not call Microsoft if it does not work for you.
With that out of the way – this morning I was asked how to get a Windows Server 2008 core installation working on Windows Virtual PC, with integration components. This is possible, and very handy, but is a little tricky to do.
Windows Server 2008 will install onto Windows Virtual PC in a core configuration with no issues. But when you try to install the Integration Components, the installer will fail with the following error message:
The problem is that the installer is trying, and failing, to initialize the sound card driver that is part of the integration components. What you need to do is to disable the sound card in the virtual machine.
You could do this through our handy COM interface, but it is much easier to just go in and hack the virtual machine configuration file. The first thing you will need to do is to turn off the virtual machine (do not hibernate it, you need to turn it off or shut it down). The file you then need to find is the .VMC file for your virtual machine – it will be in the location that you specified when creating the virtual machine:
--> the rest is on the virtual pc guy blog :