I think I understand what are you trying to do, if not PLS correct me.
What you are trying partially is not possible using single RA VPN client connection. A VM is consider a unique entity PC with unique private IP address therefore that VM machine will also require cisco VPN client and connect to vpn server just as the host WinXp laptop .
From the regular host WinXP labtop with cisco vpn client sure you shoudl be able once connected browse internal networks, as well as have internet access provided the vpn server allows hairpining for VPN address pool network.
The only way I can think of this can be possible is through L2L Ipsec vpn , then yes you can have as many VMs running off a host and be part of that single vpn tunnel policy.
Edwin, makes sence , and thanks for posting the process, to be honest I have not ran into this particular scenario from my vpn clients and to properly comment I would have to simulate what you are doing .. perhaps other netpros could comment on this one.
As for L2L vpn is simply creating a permanent tunnel from your internet router or firewall to vpn server, L2L does not requires cisco vpn cleint but your end and other end able to support Ipsec standard to creating a permanent tunnel, but from what you have indicated it seems you had it working properly.. I would probably start looking at both the host and VPC event viewer and see the system and application logs, perhaps logs could give some clues on what could be the cause of the problem..
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