Microsoft Virtual PC 2004 Service Pack 1 (SP1) contains the latest software updates for Microsoft Virtual PC 2004 that improve the reliability, performance and manageability of Virtual PC. Updates have been made to improve the performance of Windows XP Service Pack 2 as a guest in Virtual PC, to improve the manageability of virtual machines when used with SMS 2003 Service Pack 1, and to provide support for running Windows Server 2003 Standard Edition as the host operating system.
Download: Microsoft Virtual PC 2004 Service Pack 1
News source: Microsoft Download Center
System Requirements
- Processor: Power Mac G3, G4 or G4 Cube, G5; iMac; PowerBook G3 or G4;
iBook; or eMac computer.
- Operating system: Mac OS X version 10.2.8 or later (10.3.3 recommended)
- Memory: 128 MB of RAM.
- Hard disk: 12 MB of available hard disk space.
- Programs: Internet browser required, such as Microsoft® Internet Explorer for Mac or Safari.
- Modem: 28.8 Kbps or higher.
- Internet access: Internet connection through either an Internet service provider (ISP) or a network. Internet access might require a fee to an ISP; local or long-distance telephone charges might also apply.

http://www.neowin.net/forum/index.php?showtopic=229614
Last edited by 44971 on 13 Oct 2004 - 19:57
http://www.microsoft.com/windows/virtualpc/downloads/sp1.mspx
A new Virtual Disk Precompactor. A utility that is designed to "zero out"—that is, overwrite with zeros—any available blank space on a virtual hard disk.
Updated version of Virtual Machine Additions.
Update to support TCP segmentation offloading. Prior to SP1, if TCP Segmentation Offloading was activated, some virtual networking features would not function correctly. With SP1, if your physical network adapter supports TCP segmentation offloading, you can activate TCP segmentation offloading, and virtual networking will function correctly.
Update to support Group Policy Software Installation. For more information about Group Policy Software Installation, see Help and Support Center in your Microsoft Windows Server 2003 operating system.
Update to change the default performance option from Give processes on the host system priority to Run Virtual PC at maximum speed.
The hotfix described in article 833506, which describes how Virtual PC 2004 may stop responding when a virtual machine is started, in the Microsoft Knowledge Base.
http://www.microsoft.com/windows/virtualpc/downloads/sp1.mspx
I would like to know what was changed in the VM Additions.
The new VHD compactor ISO included with VPC/SP1 is nice. It will zero out the unused space on a VHD. After this you run the normal VPC compactor to reduce the size of your VHD. This works great.
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