I have been working on setting up demos of VSTS and TFS on a VPC and Virtual Server. Along the way I have come across a number of snags. Some I have managed to work around. Some I have no answers for.
First let me say that I didn't originally install VPC, Virtual Server or their operating systems. My normal machine didn't have enough horses to run these applications so I had our company's admin setup a new machine and install the basics for me. There seemed to be network problems which may be contributing to the situation. I am not blaming the administrator, just saying that I wasn't the first one to touch the machine.
The first thing I ran across is the VPC is saying that Shared Folders is not installed and I need to access the DVD image from the host machine. I chose the option to Install or Update Virtual Machine Additons with no effect. The solution was to install MagicDisc and mount the image file. At that point I could capture it as a drive.
In order to make an ISO available to the Virtual Server it was necessary to go into the Virtual Server Administration Website and configure the virtual server. Within that there is a CD/DVD section. It allows you to determine the physical location of an ISO and will update the virtual server in real time.
So far I have not resolved the network issues. I believe it may have to do with the virtual server being part of the company domain which I couldn't connect to at the time. That is a problem for another day.