We're going to start up the VM but get ready to press space when you see the awesome purple boot screen.
Press space once you see that screen and you'll be able to change a few options. We want to select a fail-safe video mode. Navigate there with the arrow keys and press enter, then choose a resolution. A safe bet is 1024x768x16.
If you missed the menu don't worry, you can still install it just fine but your mouse won't feel as nice and it won't be in color. You can also reset the VM and try again.
Now select Continue Booting to get to the installer.
Time to install! First click Agree for the license agreement and then you'll arrive at the installer.
It doesn't see any BeOS volumes on our hard drive yet so we need to create one. Click to expand More Options and then click Setup partitions.
Select the first disk (with the hard drive icon), then go to the Setup menu, Partition, intel. Click the layout button about halfway down the page and select 1 100% Partition.
Select BeOS from the menu in Partition 1 (it says Empty right now) and check Active. Now click OK and click Proceed.
Now select the disk and go to Setup, Initialize, BeOS, Be File System. Make sure to choose 2048 for the block size, different block sizes can cause problems later. Pick a name, I called mine BeHD.
Click Initialize, then Initialize again, then click Mount when prompted to mount the partition. Now in the Mounted At column you should see a path for your drive.
Click the close button (the square at the top left) to close Drive Setup. The installer should notice the new partition and select it for you.
Select any additional options you'd like and click Begin to install BeOS!
Once it finishes you'll be prompted to install the Be Boot Manager. Click Install, then leave Install Boot Menu checked and click Next. Use the default MBR path on the next page and click Next. Click No when prompted to create a rescue disk. Leave BeHD checked, then click Next. Leave it as the default partition and select your preference for how long it should wait. Click Next, then Next again, then Yes to confirm installing the Boot Manager. Finally click Done.
Now we're back at the installer. Click Quit to reboot and get ready to press space when you see the boot screen after the boot manager.