If you are MCT like me than chances are you already had problems running LAB Launcher on one of your MOC’s. This particular problem appeared with MS Virtual Server 2005 and MS Windows 7. Officially this is not supported configuration but for me this is the only acceptable configuration.
You would ask why… Well, I work at training center and part of my work is to present MOC courses – the other part is administration and engineering of MS technologies. As system engineer I always try to implement new technologies into production. Usually that means my coworkers I are first test dummies. The same goes for all new technologies – not just MS stuff but also network, hardware…
Can you imagine coming on MOC training for Windows 7 and when you enter the classroom there are only Windows XP or Windows Vista systems? What would usually be your first question? Mine would be: Where are all the Windows 7 computers I came to see and work on? And the answer would typically be: “You will be working on Windows 7 systems which are virtualized with MS Virtual Server 2005”. My next logical question would then be: How can you be so self-confident and talk about something if you do not use it by yourself and/or in your environment?
What I’m trying to say is that in our environment I want to have Windows 7 as our main system and when it comes to some particular MOC courses that can be like shooting yourself in your leg and hope for the best. The problem comes with all MOC courses which use Microsoft LAB Launcher. LAB launcher only works with MS Virtual Server 2005 which is not supported on Windows 7. So, do we continue to use pre-Windows 7 systems or we try to find some kind of solution? In my case the answer is: go and find some acceptable solution. So what we need is a workaround for installation and usage of MS Virtual Server 2005 on Windows 7. I’ve tried few different approaches (even some of my own) and the easiest one I was able to find and implement is available in
this graphical step-by-step guide.
You can find it at:
How to Install Microsoft Virtual Server 2005 R2 with SP1 on Windows 7 (Graphical Step-by-Step)

Source:
Rolly's blog