My daily working scenario looks like this: I use a laptop and Virtual Server 2005 in order to run a SharePoint environment and to develop SharePoint solutions. In order to connect from my laptop to the image and from inside the image to the Internet / Intranet (without wasting an IP address) I installed a Loopback Adapter. Ben describes how to do this: Configuring NAT via using the Microsoft Loopback Adapter and Internet Connection Sharing. The following picture shows the configuration:

In my environment the Broadcom adapter shares the Internet connection (ICS) with my Loopback Adapter. After installing Hyper-V my Loopback Adapter always showed limited connectivity. As you can see the adapter has limited connectivity and the small picture taken from inside the image shows that an IP address can't be assigned.

Here's the reason why... Part2