I have a new PC with Windows 7 Enterprise installed. I have a Windows Virtual PC with Windows Server 2008 and MS-SQL installed and a Windows Virtual PC with Windows XP installed. I need to have the Windows XP PC communicate with the Windows Server 2008 PC. Basically in a Client/Server fashion. Is this possible and if so, can someone guide me through the process?

Yes, this is possibe and common. When you create the two guests, simply make sure you assign those guests to the same network adapter on the virtual PC application (your options are basically to place them on the Private, Shared, or NAT configuration). Then make sure the guests are on the same logical IP configuration (same as if these were physicals). Some resources that may help you: http://www.anitkb.com/search/label/Virtualization Visit: anITKB.com, an IT Knowledge Base.