Some of you seem confused about how Windows 7 goes about supporting .VHD files as used by Virtual PC, Windows Server 2008 R2 and Hyper-V. Here’s a quick how-to work with .VHD files in Windows 7.
OK, let’s begin with a Windows 7 beta 1 install. Fire up a Command Prompt and type the following:
diskpart
Full Article – http://blogs.zdnet.com/hardware/?p=3324