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Virtual Machine Manager requires .NET Framework 2.0. If you have trouble installing .NFW 2.0, you may find this KB Article helpful: https://support.microsoft.com/kb/908077/en-us?spid=8291&sid=global
The most common fix BTW is:
Unregister and then reregister Windows Installer
This action corrects most situations. Additionally, this action does not affect any currently installed programs that use the Windows Installer.
| 1. | Unregister Windows Installer. To do this, click Start, click Run, type msiexec /unregister in the Open box, and then click OK. |
| 2. | Reregister Windows Installer. To do this, click click Start, click Run, type msiexec /regserver in the Open box, and then click OK. |
This worked for my XP install.