Ok!  In Part 1 we went through and set up the basic configuration for our Virtual PC using Windows Virtual PC 2007.  Now lets go ahead and load the Operating System and look at some of the features.

First of all lets open up the Virtual PC Console and click the Settings button.

This opens up the main configuration screen for your virtual machine.  Here you can increase the amount of RAM, Hard Disk space, network card, etc.  When you have everything configured to your liking click OK.  Don't worry though we can always go back and make additional changes as necessary.

I am sharing my CD ROM drive with the Virtual PC.  Because of this I turned off the "Auto Play" feature in XP.  You can also choose to use an ISO image if you want.  Now we are off!  98 is being installed on my Virtual Machine.  Just go through the setup of your virtual OS as your would on a hardware PC.

Once the actual installation begins you will get the following message the first time you try to use your mouse for anything in the VM.  Just telling you how to capture the pointer in the VM and the keyboard shortcut to release it.

Just another screenshot showing the progress of the installation on the Virtual Machine.  Oh the memories!

The virtual machine works just like the real deal, so of course you get to enter in the legendary product key.  Once you go through all the normal set up you have your virtual machine!  Microsoft Virtual PC 2007 also works with Vista.  If you have a beefy enough machine I would recommend using some type of virtual machine versus the dual boot method.  VM's just make things much easier to manage.