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Creating a virtual lan

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Hi Techies ,
Can I install and test a virtual lan as per following configuration
1. Setup s XP pro system with VMware and run - Server 2003 enterprise, 3 different win xp pro instances(virtual machines)
and than use this a test lan setup in absence of physical hardware ?
2. Or setup server 2003 enterprise and than install 3 xp pro virtual machines over it for imitating a small lan setup for testing an application running from the xp clients ?

Is it possible ? Has any one done this sort of thing ever ?

Plz help ..
Regards
V@rinder

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by charliespencer

Your first scenario is how many training centers do network training. It restricts the virtual machines to their virtual LAN so they can't interact with other 'real world' systems.

Your second is also possible. I've done it a couple of times.

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