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First, I would recommend to make sure that the image is not the problem. Please test that image on a non-virtual machine if possible, or try to install using another image.
Second, Virtual server 2005 R2 needs an update in order to be able to run Windows Server 2008.
You can download that update from
here.
Last Answered:
Nov 20 2008 6:19 PM GMT by Carlosdl 
29855 pts.