according to this the mouse won't work; https://help.ubuntu.com/community/VirtualMachines
There is a bug with PS/2 emulation in the kernel 7.04. Since Virtual PC 2007 emulates a PS/2 mouse, the mouse doesn't work.
i don't know MS virtual PC so i went looking for info and found this. http://www.linux.com/feature/60742
the last paragraph says it's not good for emulating linux. that doesn't surprise me as anything from redmond fails to co-operate with linux.
There's no dearth of free-as-in-beer or open source and free software virtualization software. If you need to run Linux under Windows there's QEMU, Bochs, Virtual Box, VMware Player and VMware server. As far as testing Linux on Windows hosts is concerned, Microsoft's Virtual PC 2007 doesn't even come close to being considered a viable alternative.
so based on that maybe trying one of the other programs might work better. i know vmware player and virtualbox are excellent.
here's a thread about me running vmware player. http://www.bleepingcomputer.com/forums/t/45974/vmware-player-free/
i'm using virtualbox on a linux host with great success. i have about a dozen distros installed. i think it works on windows as well. here's some screenshot slideshows of some of my linux virtual machines. my latest is wolvix, it works great.http://www.flickr.com/photos/stevedoeswolvix/http://www.flickr.com/photos/cybormoron707/http://www.flickr.com/photos/11215277@N07/http://www.flickr.com/photos/11538853@N06/
i hope this helps. here's some more links i found.http://vpc.visualwin.com/https://help.ubuntu.com/community/HowToConf...ftVirtualPC2004https://help.ubuntu.com/community/https://help.ubuntu.com/community/TitleIndex
I can no longer sit back and allow Microsoft infiltration, Microsoft indoctrination, Microsoft subversion, and the international Microsoft conspiracy to sap and impurify all of our precious open source GNU/Linux operating systems. General Jack D. Ripper.