Windows Virtual PC is a great program to run an operating system in a virtual machine. The only problem I have with it really is that it does not support older versions of Windows or Linux. That being said you can run older OS’s in there just like you did in Virtual PC 2007. This will not create a 2000 Mode or let you access USB devices, it will work just like it did in Virtual PC 2007.
You will need a few things for this. First Windows Virtual PC which you can download from here, http://www.microsoft.com/windows/virtual-pc/download.aspx (Windows 7 Home Premium users select Windows 7, Professional, to download Windows Virtual PC it will install fine, also make sure you install the correct version if you are running a 64-bit version of Windows 7 then select Windows 7 Professional 64-bit.) Second, you will need a copy of Windows 2000 (your on your own on this, I have one lying around) Third you will need a copy of Virtual Server 2005 R2 SP1 and you can download that here, http://www.microsoft.com/download/en/details.aspx?displaylang=en&id=2994 (Yes get that version it will help later to get everything working.) Also, you will need something to open the Virtual Server file and to extract a file from it. For this task, I will use 7-Zip which you can get here at http://7-zip.org/
So now that you have all that, first install Windows Virtual PC
Once you have that setup, click on Start, All Programs, Windows Virtual PC and open it up.
You will see that it looks like any other window in Windows Explorer, but it has a few new options.
Click on Create Virtual Machine
Follow the prompts, name it what you like, I usually give it 1024 Mb (1 Gb) of ram on systems that have a total of 4 Gb. If you have less than that just leave it at 512 Mb.
Now once your Virtual Machine is created its time to install Windows 2000 in it.
In the same Windows Virtual PC window click on your newly created virtual machine
You will see a Settings option appear next to Create Virtual Machine, click on Settings (or right-click on the newly created virtual machine and click on Settings) then click on DVD Drive
Here you can select to use the computers optical drive, or to load an ISO file from the computer’s hard drive, select the proper setting, and close the window (we will be coming back to this later)
Now double-click on your newly created virtual machine and Windows 2000 setup should start.
(Note during setup the Virtual Machine will take control of your mouse, to make it release the mouse push Alt + Control + Left arrow key all at the same time)
Now once the setup is complete and you are at the Windows 2000 desktop you may be tempted to click on Tools and Enable Integration Features in the Virtual Machine window, they will start to install but fail. These additions are only for Windows XP and newer. This is where Virtual Server comes in.
So why Virtual Server 2005 R2 Sp1? It was the last version of Virtual Server or Virtual PC that supports Windows 2000.
So if you have 7-Zip installed (if not do that now) right-click on the Virtual Server file you downloaded earlier and go to 7-Zip and then click on Extract to “name of file”
This will unpackage the contents into a folder of the same name as the file, open the folder up and look for a file named VMAdditions
If VMAdditions already has a file type of .iso at the end of it, cool you’re done, if not rename it VMAdditions.iso
Now copy this file someplace where you will remember where it is.
For the last bit make sure you shutdown your new virtual machine
Go back into the Windows Virtual PC window (Start/All Programs/Windows Virtual PC)
Click on the new virtual machine that Windows 2000 is installed and click on Settings (or right-click on it and go to Settings)
Click on DVD Drive, and here we are going to load that VMAdditions.iso file.
Click on Open An Iso Image, and load in that VMAdditions from Virtual Server we extracted earlier
Once that’s done click OK and start the virtual machine.
If the Additions do not install right away just go into My Computer in Windows 2000 and double-click on the DVD-ROM drive, this should start the installation.
Once the install is complete restart the virtual machine and make sure to install all Windows updates.
That is it, you should have Windows 2000 running in Windows Virtual PC with some integration features loaded and working.
Once you have all your updates installed check out this Post on internet browsers for Windows 2000