Virtual PC 7.0.2 (#2): System freezes on quit, potential solution; Problems with Virtual Switch
A handful of readers have reported an issue where Mac OS X 10.4.x becomes unresponsive when attempting to quit the latest version of Virtual PC (7.0.2).
MacFixIt reader Jeff writes:
"Whenever I quit Virtual PC 7.0.2, the result is a system wide crash with the gray screen of death requiring a restart. I have tried all of the shutdown/Save PC options...all with the same result. I have un-installed Virtual PC, repaired permissions, Disk Warrior'd, all to no avail."
In some instances, this problem may be resolved by creating a new emulated PC with Virtual PC using the same disk image as before so that data is retained.
Problems with Virtual Switch Meanwhile, users report issues with Virtual Switch when attempting to create a Virtual machine. Users are often presented with the message: "Unable to initialize Virtual Switch Networking."
MacFixIt reader Les Brown writes:
"I'm a web developer and I use Virtual PC to test websites in Windows browsers, connecting from Virtual PC to my development Apache server on the same 1.8 Ghz Mac G5. The G5 is connected to the internet via Airport/Airport Extreme. Before Tiger, I could use Virtual PC's Virtual Switch to give the virtual machine (i.e., Windows) a separate IP address from that of the Apache web server on the same Mac. Tiger broke Virtual Switch completely. Virtual PC 7.0.2 fixes Virtual Switch, but only if I connect to my Airport Extreme Base Station via ethernet. Virtual Switch no longer works properly if I use my G5's Airport card. Fortunately I'm close enough to the base station that I can easily run an ethernet cord to it. But it's a bummer re-entering the 'wired' world for Virtual PC."
Microsoft has posted a Knowledge Base document addressing this problem, offering the following, somewhat limited workaround:
"To work around this problem, you must exit Virtual PC and then restart your Macintosh computer. When you do this, the Macintosh computer's memory is cleared, and Virtual PC for Mac Version 7 can use Virtual Switch Networking."
Feedback? Late-breakers@macfixit.com.
Resources

I've read, via UseNet, that this is happening to others. No one seems to have a fix, and Microsoft is silent on the subject.