From what I understand, you're only getting to the first reboot after partitioning; correct? If that's correct then you should be able to go ahead and do the install (I think it's called, "Install...bring it on", or some such thing). Just boot up with the cd again and skip ahead to the "Install...bring it on" option. During this process you'll eventually get to the choice to setup your video card. At this point you can try picking the provided "vesa" option, or exit/skip the step and do what I've mentioned earlier. Let us know of any other pitfalls you get into and we'll gladly help you out.
To get to the installtion process, boot from cd and click on: Start>Install and begin with "Swap" option. You'll pick your swap partition, then your root (/) partition, and any others you may have set up (you may only have the 2; swap and /). You'll choose the filesystem for root (reiserfs is a good choice). You'll pick which packages you want to install. You'll select where to install lilo (mbr is a good choice since you're using a virtual machine). After this you'll get into names, network, audio, video, users, and a few others. Default choices are generally good choices unless you know otherwise; except for the video in your case (you'll want either vesa or skip).