I started using the free version of VMWare Server to create virtual disks. I was able to successfully install the latest distro of Ubuntu 64 bit, so I tried to install Windows 2003 and Windows XP. In each setup, I made the virtual disk 8-10gb, and each of the Windows OS installs would get up to the partitioning area, and I would try to format the partition as either NTFS or FAT. Each time, I'd receive an error that the operation could not be performed, and that I either didn't have enough memory or had a disk problem. Then, the Windows setup reboots, and the virtual disk is broken (meaning I can't boot to the ISO anymore, and I have to delete and remake the virtual disk). Am I doing something wrong? I'm using a WD SATA2 drive, and I've got 2gb of RAM (I assigned anywhere from 384 to 512mb of RAM to the VM slice too) I'm using the drive as a SCSI device, which is recommended, but I also tried IDE as well.
Also, I have to use ISOs because for some reason, VMWare will not detect my DVD/CDRom drive as a bootable device.