I just created this VM in VPC, installed VM Additions, but when I select shared folders in the settings panel, it says shared folders are not installed - what gives?
There are a couple of possibilities.
a.) Was the VM active when you tried to share a host folder? It must be running before those functions are available.
b.) Check the content of your VM's autoexec.bat & config.sys (in the root directory of your virtual machine).
The content of autoexec.bat must contain the following lines (sysini.exe must be the first line, the others will appear near the end). The location of your files will not be the same as those listed below, I moved mine to C:\Windows\VMADD - just make sure there is some reference to them in the file.
C:\windows\vmadd\sysini.exe
SET DOSAVADD13=INSTALLED
The config.sys file must contain the following line -