Setting up a VM in Proxmox will be similar to how we do it in a Type-2 Hypervisor. You'll need to specify the ISO used to install (this needs to be on Proxmox), configure hardware and give it a name. Once you have everything configured you can start the VM and install the OS. 

One of the best features I like about Proxmox is that you can provide it with an URL to download the ISO and it will download it to the system for you. 

You will need to be logged in to Proxmox Web GUI to do install a VM.

To create the VM click the blue "Create VM" button on the top right corner to start the configuration wizard.  We will only look at the basic options we need to configure a VM.

General Tab:

• Assign a descriptive name to the VM

• Assign a unique VM ID

OS Tab:

• Make sure the "Use CD/DVD disc image file (iso)" is selected

• Select the ISO we added to the system earlier

• Update the Guest OS information to match what we are going to install. 

System Tab:

• Leave these settings as configured by Proxmix

• Proxmox sets these based on what was selected as the Guest OS

Disk Tab:

In this tab we have the ability to update the size,  location of the disk and the bus type.  You can also add more virtual hard drives as needed by click the blue "Add" button.  

The bus type of SCSI should be suitable for Linux, but might cause problems with Windows. If you are installing Windows you should update this to IDE.

CPU Tab:

In this table you can adjust the number of sockets and cores. Keep in mind that if you say 2 sockets and 2 cores this would be 4 CPUs total. I would not adjust the other settings that Proxmox has already configured for you. 

Memory Tab:

Set the amount of RAM/memory that is available for the VM to use. 

If you enable "Ballooning Device" Proxmox and the VM (Guest OS) will be able to dynamically manage the memory size. What this means is that only the required memory is used by the VM and Promox could use the extra available memory for its own tasks. This can help improve the performance of the type-1 hypervisor. 

Network Tab:

Nothing needs to be updated in this tab. Though, if you want to assign a different network interface you can (recall, most servers will have multiple NIC).

Confirm Tab:

Double check the settings and click "Finish"

Installing the OS

If everything was successful you should see the VM appear on the "Server View". Select the VM and click the "Start" button on the top right corner. Select the "Console" button on the side menu to open the GUI of the VM. Install the OS. Once done, your VM is created!