I have been using Virtual PC 2007 for a while now and decided to download and try the new Windows Virtual PC RC. Once I loaded up my old Windows XP VM for development, I found that the Integration Features would not work. I had built a product release on my VM, but couldn't copy it over to my main machine - the clipboard wasn't working properly between machines. This post describes briefly what I did to get it to work..

To fix this issue, these are the steps I followed...

1. I first shutdown my VM
2. I opened my VM settings dialog by right-clicking on my VM's .vmcx file and opened the Integration Features setting.
3. I unchecked the 'Enable at startup' checkbox and set all other boxes to checked (including drives).
4. I started up my VM.
5. I then clicked 'Enable Integration Features' in the Tools menu at the top of the Virtual PC Window.
6. A window then popped up asking for credentials. Since my VM user didn't have a password, I clicked cancel and went to the control panel and set a password for my user.
7. I clicked 'Enable Integration Features' in the Tools menu again and this time entered my user's password...

... and magically all is well with the world. Integration Features work and I can copy files and folders between machines.