Well really I didn't do anything out of the ordinary for installing OS/2 Warp 3 or atleast I don't think I did.
I created a new VM selecting "Typical' for the VM configuration, followed by 'Other' for the operating system and 'Other' for the version. I enable Legacy Emulation for the CD-Rom drive.
The only problems I've experienced during the install was to NOT install network support. When I did, the install hung and I had to restart the process.
Here's a screenshot:
http://www.advernet.ca/os2/os2_3.JPG
