
This is NOT a bash, just sharing of info. Nevertheless, VMPlayer works on W7 flawlessly, and I am relieved. So it is not my laptop, host or virtual stack, it is just guest related configurations all along. The XP VPCs configured by MSFT doesn't have this issue. Windows-7 also supports pre-configured XP Virtual PCs deeply integrated to host (branded as XP mode). The mouse actions and clicks trail by half to one second. The W-VPC (Windows Virtual PC) still suffers with sluggish mouse performance. Gave a shot to use the "Windows Virtual PC", after-all, host, virtualization stack and guest are all from same vendor. Windows 7 includes almost all binaries of Virtual PC (rebranded from Microsoft Virtual PC to Windows Virtual PC), just not activated. Though I am not aware of any known issues, your experience might differ if you use an existing virtual machine images. Note: All the hosts/guests referred above are clean-installs, not upgrades or existing virtual images. I had no issues with internet connectivity (no hacks, all out-of-box config). There are many newsgroup discussions around network connectivity issues when using Windows 64bit host. But the bridged network adapter is fine and I have guest-to-host as well as guest-to-world connectivity. Only pending issue is Windows 7 (guest) doesn't recognize second network adapter configured as 'host-only'.

At last, I feel comfortable that I can switch from XP to W7 for my guest-os. The W7 guest is booting, shutting-down, hibernates and wakes-up fatser.

Installed VMPlayer (2.5.1 build-126130) on W7-RC-64bit, tried W7-32bit guest as well as XP-Pro-SP3-32bit guest. Host: Windows 7 Ultimate RC 64Bit Guest: Windows 7 Ultimate RC 32bit and XP-Pro with SP3 32bit
