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I haven't tried this because the dvd instructs me that it will not install unless there is an existing copy of XP or Vista on the 'machine'. In any event, it renames the old OS as Windows.old and everything else has been wiped, so it effectively is a clean install. Upon booting the installed machine, it clearly is a W7 machine....with network issues.

This was a MS upgrade which required an installed XP or vista on disk, and upon finding this prerequisite, doing a full install of W7. In my case (of doing it over XP), it was a 'clean' install of W7.

My host is 64 bit W7 Ultimate on which I have successfully run any number of XP Pro (SP3) VMs, with integration features fully working. I recently upgraded one of those VMs using the Home Premium Upgrade DVD (now having done it twice to insure that there was no stupid error involved), and in both cases I am not able to either a) establish integration features or B) join the host defined homegroup. In the latter case (B), upon invoking the JOIN homegroup dialog, it am informed that there exists a homegroup (as expected) but after supplying it with the correct password, I get the error message that "Windows cannot set up a home network on this computer" (note, I was in the JOIN dialog, not set up). In the former case above (a), I am using the W7 Virtual PC software (but not using XP mode--I prefer some isolation for security purposes). My most recent attempt utilized the newest version of integration features: VPCINTGCOMP14.1.7600.16403. The error (upon boot) is: "Could not enable integration features Ensure that the renote access and Group Policy settings in the virtual machine operating system allow remote connections. Please contact your administrator for more details." Some integration features do work (USB sharing, audio...). I do have McAfee installed on the host, but it recognizes an installed homegroup (and thus, I assume, is not interfering). Disabling all features of McAfee does not help. Any suggestions ?