Today (or better tonight) I have prepared a Virtual PC with a huge amount of demos for customer briefings. Of course I had to do one devices demo as well. So far so good. The new device emulator even works within Virtual PC ... great improvement ... but ... if you are not connected to a network (or better to a DHCP server) you have to complete the following steps:
Last but not least if you want to connect to your full-blown Windows OS (which is running in VPC) you have to configure your network configuration for the "My Work..." setting. Then this should work as well.
Hopefully this information was useful for you and saves you lots of time...