How to tweak virtual server 2005 so it runs smoother

I am running a Dell Latitude D630, with an Intel Core 2 Duo 2.40ghz and 2.0 gb of RAM.  I  just downloaded and installed virtual server 2005 R2 and have create a virtual machine running windows xp professional.  I am noticing my mouse movements are not smooth in the virtual machine.  I tried increasing the RAM to 1.2gb for this machine with no change.  Am I running into a performance issue?  What can I do to tweak this virtual machine to run smooth like my main system?
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ohmErnieAuthor Commented:
I installed the Virtual Machine Additions and night and day.  Thanks!
Great to hear.

Glad that i could help you.
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