How to install windows 7 to a virtual hard drive(VHD)

Windows 7 has a really useful feature called “VHD Boot”. With that you can boot your entire Windows out of a Virtual Hard Disk file (as those used with Virtual PC or Virtual Server).

This VHD file is mounted as a virtual disk, you can use it as a normal hard disk drive, but all the data is stored in ONE file. The machine is booted physically (unlike with Virtual PC), so you can only run one at a time, but have the full machine’s power.


The advantages :
Simply copy one file (the .VHD file) and you’re entire system is included.
Create incremental VHD files: One VHD file can be based on another one. So if you have different systems, create a base Win7 VHD and make all others incremental. This will save a lot of disk space!

There’re also some  disadvantages
The .VHD booted OS needs to be Windows 7, Windows Server 2008 R2 or later.
There’s a performance decrease of about 3%.
Hibernate and some BitLocker scenarios don’t work
(BitLocker CAN be used within the guest VHD though, but not on the disk where the VHD resides).
Windows Experience index won’t work.


So how do you install a VHD-Boot machine?
Boot the system with a setup DVD or USB stick.
At the setup screen, don’t choose “Install Now”, but press “Shift-F10” to get into command line mode

Enter diskpart to start the partitioning utitlity by typing DISKPART

Create a new VHD file by entering

create vdisk file=”D:\pathToVhd.vhd” type=expandable maximum=maxsizeInMegabyteNow

select the new VHD and attach it as a physical disk.

select vdisk file=”D:\pathToVhd.vhd”
attach vdisk


After that switch back to the setup window (e.g. using ALT+TAB) and start the setup.

Proceed the normal setup, but make sure you install to the correct disk (normally the last one), ignore the “Windows cannot install to this disk” warning!!

At next startup, you’ll see Windows 7 in the boot menu!