I also tried having the installer go on the built in XP Virtual Machine, but the VM uses almost like a NAT translation in it's networking, so it will surf the internet, but it won't see our internal network. I stopped messing with that after the first hiccup so it could very well go. Hardsetting the IP info didn't work so I quit on that pretty fast.

Toshiba CTX670 with ies32 8 port VM - retired
2 Cisco UC560's and 1 UC540 in a multi site config