I’ve recently spent of bit of time building a Windows 7 VHD for some custom development. I thought I’d take the time to document my experiences:
1) Download ISO. I used a tool called MagicISO to extract the install.wim file.
2) Create a VHD from WIM using script downloaded from here
3) Install the Windows® Automated Installation Kit (AIK) for Windows® 7 RC
4) Mount the ISO (using something like Magic Disc)
(As you have probably gathered by now I'm against burning media for the sake of it)
Use script (e.g. for X drive):
CSCRIPT WIM2VHD.WSF /WIM:X:\sources\install.wim /SKU:ULTIMATE /TRACE:TRUE
But then if you are as silly as me you may have forgotten that Virtual PC doesnt load x64 images. Don’t fret though, this video will guide you through making your x64 VHD bootable.