I just want a connection to talk between the hosted and the host OS’s.
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From the help in VPC2007:
Extending networking capabilities for virtual machines
You can install and configure Microsoft Loopback Adapter to extend networking capabilities for virtual machines. You can use Microsoft Loopback Adapter to provide the following networking capabilities:
machines when the host operating
system does not have a physical
network connection available. To
provide network connectivity between
the host and virtual machines,
install Microsoft Loopback Adapter on
the host operating system and then
configure a network connection on
each virtual machine and the host
operating system.