I saw several posts about problems creating VM machine running m0n0 when
having 'only' .img file (like CF once). I must admit: I've spend some
quality time trying to solve this issue (...) with some results:)
All you have to do is:
1. Download alternate VM mounting utility:
2. Create VM (IDE) HDD.
3. Mount this file using VDK.
4. Physdiskwrite it.
And here you go! It should smoothly load :).