I don't think this feature is working, because I went to "Create VHD" and put it on the MBR, and put in my Windows 2008 disk - didn't see anything. Came back, and it was gone
System Manufacturer/Model Number HP Compaq Presario/SR5113WM OS Windows 7 Ultimate x64/ Windows Vista Ultimate x64 CPU AMD Athlon 64 X2 3600+ 1.9Ghz Motherboard Asus M2N68-LA Memory PNY Optima Memory DDR2 2GB 2x1 kit Graphics Card PNY Nvidia 8400 GS 256MB Sound Card On board RealTek Monitor(s) Displays Acer X163W LCD Screen Resolution 1366x768
Keyboard Standard 102 key with volume and sleep buttons Mouse Wireless Logitech LX7 PSU Dynex 400w Case Nothin Special Cooling Stock Hard Drives Western Digital 160 GB SATA 3G (3.0Gb/sec)
7200 rpm
Western Digital 160 GB IDE Internet Speed Comcrap 10mb cable Other Info Insignia 2.1 speakers, wireless Xbox 360 controller w/plug n play charger, Belkin wireless G + mimo usb network adapter.
That is a good question: can one run an OS from a VHD in this way?
Later Ted
Eventually Yes, This will become the builtin VirutalPC software that allows windows7 to boot and manager separate VHDs...However I believe its unfinished so that functionality is disabled until its ready