If you are running Virtual Server 2005 R2 on a server, you were probably forced to install an earlier version of the Virtual Machine Remote Control Client (VMRC) as the R2 version will not allow itself to be installed on Windows 7. The problem is that the earlier clients are not compatible with the R2 server version, thus you see "Connection to server has been lost". To fix this, simply copy the vmrc.exe file on the server to your client. If you are running a different bit width than the server (32 vs 64), create a dummy installation with the version that you need to get the file. The 32-bit client will run on a 64-bit machine, but the 64-bit client will not work on a 32-bit machine.