I am using Microsoft Virtual Server 2005 R2 to build a base Windows XP image for our client imaging process. I am using the Windows 7 64-bit Release Candidate with Internet Explorer 8 to access the Virtual Server web interface. Unfortunately, I was having an issue where the mouse acted quite oddly in the ActiveX control used to remotely control the guest OS running on the remote Virtual Server. This made the mouse unusable, and it was a pain to work on the remote system.
I didn’t have this issue on IE 6 on XP, so I just used that. I finally figured out what was causing the issue on IE 8 / Win7 though. It turns out that disabling Protected Mode for the Intranet zone, which is the zone that I put the Virtual Server web URL into, fixed the problem. Yay!