Coming from a perfect working copy of VM2 and XPPro now to VM3 and XPPro (+ 7 Ultimate) both machines drop the network constantly now with VM3. The network adapter becomes unavailable and sometimes 7 can repair the connection by restarting the adapter, but sometimes a full reboot of the entire iMac is required. I never lose connection on the Mac side, only the VM side. If you are running VM3 and having this issue please post up, or if you have a solution that would be great. EDIT: VMWare sets by default that you use the Mac's NAT setting in Virtual Machine>Network Adapter, but the proper setting is actually Bridged>"your router". Hope that helps someone.