i install OS using vmware trying it out.. but things i can try is limited.. when i run IE i can't get into the internet it said search for proxy why? and can i install application how do i move installer files in VMWARE?

make sure you have the virtual network setup correctly, you virtual pc must also have a ethernet ataptor.

this guide seems to be good at showing you what's envolved --> http://www.radford.edu/~nsrl/CREUProject/VMWare-howto.pdf

To move files into or out of VMware you have to install VMTools, here is a addon you might find use full http://www.wincert.net/forum/index.php?showtopic=428

To connect to the net you might want to try different configurations if one don't work example try NAT setting