Brian Keller from Microsoft's Developer Platform Evangelist Group wrote a great blog post oin how to build a Virtual Windows 7 machine. If you are a Virtual PC junkie the steps look about the same as always, but if you've never created a vhd from scratch--this is a good one.
, January 10, 2009 6:21 PM by briankel
Yesterday we made the Windows 7 Beta available for public download. Hopefully you’re as excited as I am that the beta is here! The Windows 7 Beta is already getting some rave reviews for its new features, performance, and stability. But it is a beta, and with that comes the potential risk that some things may not work as well as they will in the final release.
If you have a spare test machine that supports the system requirements then I highly recommend installing the beta on your test machine. But if not, one way to mitigate the risks of using pre-release software is to use virtualization technology such as Microsoft Virtual PC 2007.
Creating a Windows 7 Beta 1 virtual image (aka virtual machine) is fairly similar to the process you would go through to install the Windows 7 Beta “on the metal” (non-virtualized). But for people who have never used Virtual PC before there are some differences.
Here is how to install the Windows 7 Beta with Virtual PC 2007......