Need assistance with Win Virtual PC and XP VHD

We're migrating from XP SP3 to Win7 Enterprise and there's a few instances where I need to access XP again for certain apps. I'd rather not create virtuals for every person on my SAN but rather give them Windows Virtual PC to run on their own system to access whatever they need.

What I've tried so far (and feel free to correct my steps if necessary) is I've Sysprep'd an XP machine and run Acronis to make a TIB. Then using Acronis, I've convert the TIB to VHD. Copied the VHD to my Win7 machine (and Yes all the hardware is identical) and added the VHD into my virtual machines via the wizard. When I launch this new VHD, I get an MBR error and it asks to boot from floppy.

The source and destination laptops are both HP 2730p.
Windows XP SP3 on one, and Windows 7 Enterprise 32-bit on the other.
Windows Virtual PC installed on Win7 machine.
Acronis 8 installed on the XP converting the TIB to VHD.

Any advice is most welcome.

Thanks!

This is a typical scenario, there are a few threads already discussed this, for example:

Make your Live system into a VHD

You will have to adjust kernel images and registry settings in order to make it to boot, since vm has a different set of hardware configuration.

You can use our VMLite to make your VHD file to be bootable. Install VMLite, then launch the VMLite Wizard, use the 2nd option to import your VHD. The wizard will automatically adjust all settings and make it bootable.

http://www.vmlite.com

Alternatively, you can use our MyOldPcs to convert your physical PC to a VHD file.

billderer, make sure that the drive is not bigger than 127GB, since there are some limitations. Check KB MS Virtual PC Does Not Boot from Converted VHD Disk | Knowledge Base for the details.

If it's not the issue, let me know what is the exact build and version number of Acronis software you use.