MS Virtual PC 2007

I have just started playing around with MS Virtual PC 2007. It seems like a cool way to have other OS's "on hand" without having to do a true install.

I installed Win98 on one virtual machine, but had trouble updating it through Windows Update. The info on the error indicated that it may be a firewall setting. The PC I am running VPC on only uses Windows Firewall, but is connected to an NAT router. I tried adding VPC to the WF exceptions, but that did not help.

Any ideas?

What kind of security issues does one have to worry about while on the net on a VPC session? Or is that the beauty of it, that it is self contained?

I would like to have a comletely updated install of Win98 on a virtual machine just for old times sake, and a lightweight Linux distro such as Xubuntu.

Thanks,

PK