Ive wasted a lot of time on this - so I hope it helps someone ...
On a Windows Server 2008 VM, I couldn't :
- save directly from Word into a SharePoint Document Library
- "View in Windows Explorer" the SharePoint Document Library
The normal solution is to start the "Web Client" service to enable WebDAV but the service was missing.
Solution was to install the "Desktop Experience" feature.

4 Comments:
Did you experience a significant slow-down in your VM once you enabled the desktop experience? My Win2008 Server VM is very slow even though i have 2.5GB memory dedicated to it.
The vista theme only might be interesting when setup as a terminal server
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