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I double clicked on the an existing .vmc of Windows 7 and it brought up the Windows Virtual PC that comes with the Windows 7 ultimate edition.

It runs fine, however, I can't seem to enable integration features. I click on the Enable Integration Features menu item and it presents me with a login screen. I login with my domain credentials (i am on my company domain), but it says "Logon attempt failed".

The virtual image itself is not connected to the domain, it's just a regular install.

How do I enable the integration features?

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Looking for a clever way around domain policy/computer usage guidelines/logging? XD – RobotHumans Dec 8 '10 at 19:21
Not really, just want to be able to access the host drive from the virtual machine (i guess that requires integration features). – AngryHacker Dec 8 '10 at 19:32
Nope, you can set up a shared drive on your own machine and browse to it from the VM. That's what I always do with VMs. I never got integration features working properly. If you're using VPN on the VM it could get hairy... – Ciaran Dec 8 '10 at 22:07

Four years later but I still had this problem, so hopefully this answer will help someone else.

What's going on here is that the Virtual PC software needs to connect to the virtual machine via RDP, but insists on attaching your real machine's domain to the credentials. So even though you've created a local administrator account on the VPC, or are using the built-in one, you still can't log in to the VM with those credentials.

You can solve this by prefixing your username with a backslash to scrub the domain, e.g. if using the built in IEUser account

Username: \IEUser
Password: Passw0rd1

Worked for me.

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