I installed the “Virtual Machine Additions” and this significantly improved performance. My virtual machine is Windows XP running on a Compaq ML370, and the performance is definitely reasonable. I just installed Visual Studio 2005 Beta (December) and then Office 2003. I think there were 2 warnings during the install, but everything seems to be fine so far.
By the way, why does Visual Studio 2005 beta require Office 2003 to be installed to create a project? At least, this was one of the warnings I received after installing Visual Studio 2005.
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