I have not tried putting a burned cd in the physical drive, I am using
the virtual cd-rom with a mounted iso and it does not work.  I have
confirmed that if you install 7.04 and upgrade to 7.10 it works fine,
but installing from a mounted iso on the virtual cdrom does not work on
7.10.

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Cannot mount CD-ROM in Virtual Server 2005 R2 (SP1)
https://bugs.launchpad.net/bugs/155607
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