It is possible to using
Virtual PC (instead
VMware) with iSCSI method !!!
One important thing must be changed in virual machine bios setup just before OS installing:
1) run virtual machine and enter bios setup (hit
DEL);
2) go to
POWER submenu;
3) (!!!) change "
ACPI Aware OS" to [
No].
4) save changes, exit bios setup, install OS (Win XP)
Some notes:
- To setup "Host OS <-> Guest OS" network: install "MS LoopBack Lan Adapter" in Host OS;
- To attach phisical drive to virtual machine: use HDD with size <120Gb with FAT32 partiotions. Don't use NTFS partitions becouse attached phisical drive used in ReadOnly mode (WinXP don't like this mode for HDDs :wink

You can download
Microsoft Virtual PC 2004 Service Pack 1 here.
Direct link (18Mb) to version used by me.
Tested on
FlatOut2 (DVD,Buka).
Details in Russian