While not too familar with Virtual Machine 2007 (do you mean Virtual PC 2007?), I am familiar with virtualization in general.
A quick search on Virtual PC 2007 shows that Windows Server 2003 is not a supported OS, so that is one potential strike against you.
In general, the Virtual Machine does not get access to physical hardware (in your case the wireless network controller), rather it is given a simulated device and loads up the device driver for that simulated device.
Again, I'm not an expert in the hypervisor you are using, however I use VMPlayer, VMware ESX and Hyper-V on a daily basis and this is how it works for all of them.
I solved this long ago ( .5-1 yr ago )
It's in the settings for the VHD that would be a different file, a settings file.
And in the configuration settings or configuration file -> hardware settings, i recall seeing two adapters, one for wired and one for wireless.
There should be a setting for keeping the wireless signal on.
imo, a virtual machine and it's settings...
the settings must be stored not in a document, video, related directory. But Operating System related directory.
I'd like all virtual machine settings, to be stored near the microprocessor on a buffer. Read-only buffers are optional because the machine has a utilization and it would not be reprogrammed. EEPROM is useful for house-hold consumers who could change the buffer for different Virtual Machine settings.
This is huge huge biz today when there are 1000 OS's and many many are binary incompatible. Bootstrapping and tri-booting with them is not easy even.