If, like myself, you need (or want) to work with more than one Operating System on the same piece of hardware, before Windows 7, you could either create a multiboot environment using separate partitions or run a virtualisation solution like VirtualPC. Both have their pro’s and con’s, most notably:
Enter Windows 7 with VHD Boot. Like any ingenious change, it seems so mindbogglingly simple that you keep wondering why nobody had thought of it before…
“Simply” add a storage driver that surfaces a VHD file like a physical disk, support that in the boot loader and voilà – you get a multiboot scenario with the flexibility advantages of a virtualisation solution! Amongst other things, this is an ideal scenario to non-intrusively test Windows 7 on any system, even ones currently running Windows Vista (or earlier). I use this to check out how my media centre would look like in Windows 7 before actually upgrading the machine as soon as the release version of Windows 7 comes out.
Now, the walkthrough on TechNet already gets you pretty far, I won’t bother repeating all the steps described in there, however there is one piece that was missing for my machine:
The Notebook I was trying this on (Toshiba Portégé M400) ran it’s disk controller in RAID mode, requiring a mass storage device driver before it could access the VHDs.
However, with the new DISM.exe tool included in Windows 7, this was most easily overcome:
DISM /Image:V:\ /Add-Driver /Driver:M:\Drivers /recurse
This effectively updates the VHD image with the necessary drivers. The rest is stock standard sysprep post-processing and I ended up with a ready-to-use Windows 7 installation.