Ok, I've installed VPC 07 and at the part where it asks:
"Reboot and Select proper Boot device or Insert Boot Media in selected Boot device"
I go to the CD menu and choose "Capture ISO Image...", then I choose my XP ISO file. After that it just sits there showing the client mac address and "dhcp" with a backslash spinning around.
I've tried resetting as well after choosing "Capture ISO Image...", but that still doesn't work. Do I need to have a virtual drive program like daemon tools as well? I made my XP ISO file with UltraISO.