Looking good! Although I have to say... Kind of funny that the VMM 2012 installer squawked saying it didn't have enough memory to meet the system requirements, when it did (albeit dynamic memory - which you'd think it could recognize!)...
If you're installing something (anything) inside a VM with DM enabled, then it can only ever detect what the RAM highwater mark is since the last boot up (incl. reboot/reset). It has no vision of any VM setting in the VM configuration, including Dynamic Memory.
I usually set the minimum RAM to whatever the minimum is required for the services to start up and run in the VM. Pointless setting it to 512 MB start up if the VM will never get down that low.