Are you using a disk? I didn't load it that way, I used the support website and it worked fine. I started Virtual PC XP mode, then accessed the internet through the XP mode. The bad part of that is that you have to start with R4-5 because that is the only full install on the Avaya site (the others are just upgrades). But, each upgrade only took a few seconds and once I was at 9 it has worked fine since.
Explore the CD and find the install Icon, right click on it and select XP mode, or if listed Viritual XP mode. Then left click to install and it should install from the CD. Even in virtual xp mode windows 7 may try to install in 7 mode unless you override it.
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