Unable to connect to the network in VPC

Recently I came across an odd scenario. I have a Microsoft Virtual PC running in my machine. I have windows 2003 installed in one of the VPC hard disk. Everything was working fine, until a fine day I was unable to connect to the network. I tried re-installing the drivers, configuring a static IP address. Nothing works. The parent machine works fine though.

Googling doesnt help much. I know that the VPC is sharing the parent network connection. Then I opened the network connection settings (refer below image, and right click on the icon) and selected "Shared Networking" option. Now everything works fine.

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