I use VMware to emulate XO on my Windows XP.
The image that I use is that:
http://croquetweak.blogspot.com/2008/12/emulating-latest-stable-olpc-xo.html
The image works fine!
I have mounted this image on my two laptop with my WiFi Router Dlink setted to an open network without protection.
With this configuration I see each laptop.
With one laptop I can invite a second to an activity, but the condivision of the activity don't works, do you know why?
