I have downloaded the vmware appliance for maemo sdk 0.4. I am able to bring up the environment and do see the maemo sdk scratchbox etc.. but I can not talk to internet within the vmware. I only see eth1 interface but no IP. I tried assigning manually but no luck. My other vmware images (ubuntu, Janus) works fine and I am on internet all time.

Does anyone know how to configure my vmware or maemo sdk image for this ?

Assuming network config'ed in the appliance correctly, check your host connection has bridging enabled.

You have to go into the Applications, System, Network menu, and enable the wired interface with DHCP. Then, in a regular (not scratchbox) terminal, you must do a "sudo cp /etc/resolv.conf /scratchbox/etc/resolv.conf" no quotes. This will get the network working properly!

I use maemo-sdk-vmware maemo-sdk-vmware_0.4.7z
found at http://maemovmware.garage.maemo.org/

I run the sdk under vmware
sdk update update prodeces the following error:

[sbox-CHINOOK_X86: ~] > apt-get update
Ign file: chinook Release.gpg
Ign file: chinook Release
Err http://repository.maemo.org bora Release.gpg
Temporary failure resolving 'repository.maemo.org'
57% [Connecting to repository.maemo.org]

after a while it shows:
[sbox-CHINOOK_X86: /] > apt-get update
Ign file: chinook Release.gpg
Ign file: chinook Release
Err http://repository.maemo.org bora Release.gpg
Temporary failure resolving 'repository.maemo.org'
Err http://repository.maemo.org bora Release.gpg
Temporary failure resolving 'repository.maemo.org'
Failed to fetch http://repository.maemo.org/dists/bora/Release.gpg Temporary failure resolving 'repository.maemo.org'
Failed to fetch http://repository.maemo.org/extras/d...ra/Release.gpg Temporary failure resolving 'repository.maemo.org'
Reading package lists... Done
E: Some index files failed to download, they have been ignored, or old ones used instead.

what is wrong?

DNS resolution does not work.

If networking works inside vmware instance and the only problem is inside scratchbox and suggestion above (sudo cp /etc/resolv.conf /scratchbox/etc/resolv.conf) doesn't work then just edit resolv.conf inside scratchbox target by hand (vi /etc/resolv.conf) and copy there same settings as in main system outside scratchbox (real /etc/resolv.conf)