How can I install Windows 7 or Windows Server 2008 R2 to a virtual hard disk (VHD) file?

A. Windows 7 and Server 2008 R2 add the ability for an OS to be installed onto a virtual hard disk (VHD) file to boot physical hardware. To do this, perform the following steps:

1. Boot from the Windows 7 or Server 2008 R2 media.
2. Select language options and click Next.
3. At the Install Now screen, press Shift and F10 simultaneously to open a command prompt window. You’ll partition the disks and create your VHD file in this window.
4. Select the disk and wipe all of its existing content using the following commands.

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