Almost every one will face this issue when installing Windows 8 on Virtual machines. This is what happened to me while installing Windows 8 Developer Preview on VMware Workstation 8 .0 build 471780.
I have created New Virtual Machine for Windows 8, but while installing Windows 8 it gives me "Vmware Workstation 8 Windows Cannot Read the <ProductKey> settings from the unattend answer file" error. And Windows 8 virtual machine keeps on rebooting...In VMware Workstation 8.0 "Windows 8" Version is a not available under.
Error Message, "Windows cannot read the <ProductKey> setting from the unattend answer file."
Solution is so simple, remove or Disconnect "Floppy" from your Windows Virtual Machine. Because, what happens actually is the autoinst.flp file contains the ProductKey. And autoinst.flp is mounted when you start the Virtual Machine VMware.
Right click on the floppy icon on the right bottom corner on the VMware, and click on settings.
Un tick, Connected and Connect at Power On under Device status and click Ok.
Now you can install Windows 8 without any issues. And by any chance if Windows 8 installation ask you to type a product key, just key in this Product Key: DNJXJ-7XBW8-2378T-X22TX-BKG7J
Alternatively, you can also remove the floppy completely from the Virtual machine, just follow these steps.
If you are Windows 8 Virtual Machine is running, power off Windows 8 Virtual Machine & Go to Virtual Machine settings & remove the Floppy.
Hyper-V does not enable floppy drives by default, and MDT does not use the floppy drive at all.
Product Key: DNJXJ-7XBW8-2378T-X22TX-BKG7J