I'm using VMWare. My host machine has internet connection. I have selected NAT in the virtual machine settings. What else do I need to do to get internet connection in virtual machine.
First, I'm assuming you're talking about VMWare Workstation or VMWare Player, and not VMWare Server (free edition.)
In response to your 'any specific services to run in Host for NAT to work?' addition to the question, yes, there are services directly related to NAT. You should have a VMWare NAT and VMWare DHCP service. Both must be running for NAT to work properly. I may be wrong, but I believe the VMWare Authorization Service must be running as well.
Also, make sure your guest's network settings are set to use DHCP. When you have the VM configured to use NAT, VMWare will answer the DHCP request. If you have your VM configured to use a bridged connection, you must have a DHCP server on your real local network that will give the guest an IP.
One last thing, VMWare's installer will have created two virtual network adapters. Make sure you haven't disabled them. Your guest 'reaches' through these.
Ok, ONE last thing: Remember that a NAT'd VM will appear, to the rest of the world, as your host machine. A bridged VM will appear as a true host to the rest of the world. Depending on your network environment, this can cause issues. For example, here at work, the network is configured such that a MAC address is tied to a network port in the wall. ie: I can not unplug my desktop from the wall and connect my laptop, nor can I plug my desktop into a different network port. As such, I can not use bridged VMs. Because a bridged VM appears as a true host on the network with it's own MAC address, my bridged VMs packets are denied at the switch.
I have installed Windows 8 on virtual PC and enabled NAT Connection. All fine, but i had no Internet connection. All possible solutions tested, but not luck. After this i have looked in my network state and it looks like so:
DNS-Server address was wrong! I have opened my network settings in changed DNS-Server address from auto to manual, entered IP-Address from my Router and woops, it work's.