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116

answers:

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I just want a connection to talk between the hosted and the host OS's.

+1  A: 

From the help in VPC2007:

Extending networking capabilities for virtual machines

You can install and configure Microsoft Loopback Adapter to extend networking capabilities for virtual machines. You can use Microsoft Loopback Adapter to provide the following networking capabilities:

  • Provide networking for virtual machines when the host operating system does not have a physical network connection available. To provide network connectivity between the host and virtual machines, install Microsoft Loopback Adapter on the host operating system and then configure a network connection on each virtual machine and the host operating system.
Forgotten Semicolon
A: 

You can set the network to local only within the vpc setting but that only let's the vpc's talk to each other and you mentioned the host pc itself. to get that you are going to have to go up a setting and use the NAT setting or or the loopback.

The settings are defined on KB 833134 http://support.microsoft.com/kb/83314

Andrew