First, Are you using Windows XP home Edition, then I think "IpEnableRouter" will not work. It is not possible as Microsoft has stripped this product off the facility you are trying to work on.
Second, using the ADSL modem to connect to the Internet was a better idea. Since using the "Allow other network users to connect through this computer's Internet connection" is a sort of NATed way XP uses to give other users access to the Internet, which may not work properly with the setup you have.
Thirdly, it is not possible to use the PPPoE software to connect to the Internet twice. Once you have connected via one PC, it is not possible to connect via another PC as the username is already in use and your ISP will probably ignore the second connection request. So you have to be in a LAN behind the modem (which connects to the Internet) to use the Internet. Basically PPPoE dialing if done, can only be used for a single PC.
Now coming to your problem. What you are trying to establish is trying to share the Internet on the VMware machine via the Server.
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If you are comfortable with keeping the VMware machine on the same network, then the solution is pretty simple.
Configure your modem to connect to the Internet and lets say it has an IP address of 192.168.0.1
Configure your XP server machine (as you call it) a static IP of 192.168.0.2 with subnet mask of 255.255.255.0 with Default Gateway 192.168.0.1
Configure your VMware Machine a static IP of 192.168.0.3 with subnet mask of 255.255.255.0 with Default Gateway 192.168.0.1
In Vmware Server go to-
Host >> Virtual Network Settings >> Automatic Bridging >> Uncheck "Automatically choose an Available Physical Network Adapter to bridge to VMnet0"
Host Virtual Network Mapping >> VMnet0 >> Select you NIC connecting to the Modem.
Hit ok and reboot the Virtual Machine.
If your network is in place, you should be able to browse the Internet on the Virtual Machine.
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If you are trying to connect to the Internet keeping the Virtual Machine on a different network, you must have XP professional and enable the following Registry key as already done by you.
http://www.petri.co.il/configuring_r...pro_xp_pro.htm This link contains all the information to get you started.
Ravi.