Q. Do I need to install Integration Components with Virtual PC on Windows 7?

A. Yes. While Windows 7 and Windows Server 2008 R2 have the integration components for Hyper-V R2 built in, these aren't the same as those used by Virtual PC. You need to install the Integration Components through the Tools, Install Integration Components menu item.

Once you enable the Integration Components and reboot, you won't have to press Ctrl-Alt-Left Arrow to release the mouse. In addition, the display driver will be updated, as will accessibility to USB devices and audio support. The picture below shows device manager before and after the integration components are installed.

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