I have figured it out! Thank you for your help SYNACK.
All computers are named the same on their VPC(HD and VMC are not though), I had to install loopback adapter on host server and then set up the virtual network inside VS2005. Once that was done, I enabled DHCP, used 192.168.1.1 as the network and then set the settings there. Added the virtual network to the network adapter of the VPC and then started it up. Once started i changed the LAN on the VPC to one of the addresses on the loopback network and it now works. I can share files from the VPC to the host!
Thanks,