Just created master VM boots from Windows Server 2008 installation DVD and OS installation process begins:

Note that mouse could not be available at this time as Integration Services must be installed in guest OS to support mouse.

Select required Windows Server 2008 Edition from the list and press “Next” button. In our example we are installing “Windows Server 2008 Standard (Full Installation) x64”.

Follow the rest of wizard steps to install Windows Server 2008:

While installing on every restart VM displays a prompt “Press any key to boot from CD or DVD...” – disregard this message and continue to boot from HDD.

Once Windows Server 2008 installation process is finished OS loads in “Windows Welcome” phase. Specify Administrator account password:

After completing OS installation you should see “Initial Configuration Tasks” screen: