New
#11
The virtual hard drive is still a file stored on the actual physical drive you have Vista installed on. What I was attempting to point out there was that you won't be to start up the Windows installer for 7 from inside the Virtual PC 2007 itself unless you were attempting an upgrade of Vista already on a vhd there with that running.
When first loading up the VPC 2007 version already having a vhd created and ready for 7 and the 7 dvd in the drive you should see the installer start up out of nowhere in a sense as if you had booted directly from the disk. Yet you are still booted in Vista. Once you reach the part to select where 7 is to be installed the vhd you created will be the only drive/partition to select unless you already other vhds present.
Once I have Vista back on one drive again here I will be able to capture some screens of the entire process which will help a great when trying to cover things. First I have to take a few 7 drives offline for that however since I've been working with 7 in different configurations.