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I'm running a local network. My IP ranges from to All IP are static ones. And my router's IP is and I provide it as default gateway and preferred DNS server on client machines.

Everything worked fine on this scenario. I could use internet and reach services on other machines. BUT I have installed VMware server 2 on the windows XP to host windows 2003 Virtual Machine (VM). I set the following configuration:

Windows XP's => 
Windows 2003 => (virtual machine)

This approach worked just fine as it used to work with Microsoft Virtual PC. I can access mysql & IIS websites on the windows 2003 virtual machine.

BUT two things doesn't work anymore on the Windows XP:

  1. internet connection - but I can see the MAC address on the wireless router
  2. IIS - Ping on it's ok as I can hit localhost:8222 nor localhost

Does anyone knows how to fix any of this? (at least the internet connection)

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Try disabling the virtual network adapters VMWare Server installs automatically on your host, and see if things get better; they're called "VMware Network Adapter VMnetX".

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I dont remember the specifics... but i think its related the the type of vNIC you are presenting to the Server. Have you tried the other options undrer the VM Server for that hosts NIC?

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