When attempting to automatically configure VSS tools on a Virtual Machine you are not presented with the expected option of 'Configure VSS Tools'
The automatic configuration of VSS Tools is only available with Windows 2008 machines that are powered on.
There are two reasons why you are not presented with this option:
1. The VM you are trying to configure VSS tools with is a Windows 2008 machine, but it is powered off
2. The VM you are trying to configure VSS tools with is not a Windows 2008 machine
If you are attempting to configure VSS Tools on a Windows 2008 machine, ensure it is powered on.
To configure VSS Tools on a Windows 2003 machine, this will have to be done manually. The following knowledgebase articles explains this in full: