I believe this is an issue with the version of DANIs that comes with that CD, or perhaps a bad setup string is put on the DANIs driver. Try to read the docs and set the string correct, or slipstream a new, custom Demo CD with the latest DANIs to replace the old version it ships with.
Thanks for that Saijin_Naib, I selected an IBM IDE driver from the setup menu which is one of the steps suggested to try and I will have to try the rest of them too.
I sugest you to try ecomstation 1.2 demo cd use the VirtualPC, you can see ecs 1.2 and you don't go crazy
Hehe

Well, on my desktop computer which I believe has a faulty motherboard, Virtual PC is crashing my system. In fact, it is triggering something that wakes up the glitch in the motherboard that causes the whole system to stall (not complete freeze though, and this remains until a reboot is performed) inside or outside Windows.
This ASUS notebook is a new machine, n50vn series and it's been running great, much better than the desktop (custom built).