After creating the .VMC and Virtual Disk in VPC you have to set the memory to 512 MB; otherwise the installation will not continue. Here are the step-by-step screen captures:



Just click Next if you don't have anything to change.



Click "Install now" to continue; the next page asks for the product key, which was provided during the process of downloading the ISO file.



After entering the product key, I left the "Automatically activate Windows when I'm online" box checked.



Now two options are presented: "Windows Longhorn SERVERENTERPRISE" or "Windows Longhorn SERVERENTERPRISECORE," and if you wish to have a minimal installation of Windows Server choose Windows Longhorn SERVERENTERPRISECORE. Then click Next on the succeeding page, check the "I accept the license terms" option, and click the Next button to continue.




The following screen asks what type of installation you want. Choose the one that suits your requirements—in my case I had only one option.




Click the Option.



Click Next on the page where you are asked where to install Windows (since there is no partitioning on a VPC).



Wait until the installation is complete.






Then you have your newly installed Windows Server 2008 Beta 3 up and running. After this process you still have to configure what roles you're going to set on your server. I think there are 17 of them. I still have a long way to go exploring this new server OS, but am getting more excited now than ever.