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windows home server in vmware bluescreen error

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im getting an error while installing windows home server in fact its a b.s.o.d error, with a 0x000000007b error which i know to be a hard drive error, but i have created a new virtual drive and then it formats in the process of install, can anyone shed any light into why i am getting this particular blue screen error?
 
I had this error once when I used a Dynamic Virtual HDD. Windows had an issue with the changing size and crashed.
 
There is no reason why it shouldn't work in a virtual machine - every version of Windows from XP to Vista to 7 and all Server OSs from 2003 to 2008 work just fine in VMs.

The specific issue I was refering to was a dynamic virtual drive, as opposed to a static virtual drive. The latter is fixed and gets written upon creation. The former is made larger on the fly, though the client OS doesn't [shouldn't] know any different.

However, in some cases Windows doesn't like this. With both a Windows 7 and 2003 VM I had an issue when using a dynamic virtual disk.
 
i virtualised the WHS beta without any issues. i remember having to configure the VM with an IDE drive because WHS setup failed to detect the default SCSI drive that vmware normally uses for windows 2003. i didn't get any BSODs though - just a simple message saying drive not found. :p
 
I've had WHS virtualised in VMware Server just recently, no problems apart from the initial SCSI drive not being found (created an IDE instead).
 
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