I just started working on this after almost 2 months. I got this working now. The problem was with the OS. I changed the OS from windows server 2008 to Windows Xp 32 bit. I also edited the registry as shown here http://www.intel.com/support/network/sb/cs-005897.htm
Now I can see the VLAN traffic.
P.S.: Editing the registry in windows server 2008 did not help.