The default network setting of Windows XP Mode is NAT (Network Address Translation), but you can change it. NAT allows host machine to act as an agent between external network and the VMs running on host. The network’ll use the host's IP address itself, which represents the group of VMs on that host, to communicate with VMs. The host can resolve the network packets to the specific VM they’re intended for, using port numbers. This’s why, XP Mode VM, using NAT as the default configuration, is ready to connect to the network upon first launch. However, note that the network communication has to be initiated first by the NAT configured VM. In VM settings in Windows XP Mode1, you can specify up to four emulated network adapter options, which can be assigned to any network card installed on the physical computer.
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