In Windows 7, you can create, use, attach & manipulate Virtual Hard Disk Files (VHD’s) as though they are real disks. This allows Virtual PC users to be able to mount their virtual disks within a live Windows installation without the need of booting the virtual PC environment.
How to create Virtual Hard Disks.
Right click on Computer > Manage > LHS pane > Disk Management.

Select Action tab > Create VHD.

Specfiy the location and its size. Once this is done you will see a VHD HBA driver being installed notification.
How to attach Virtual Hard Disk File.
Right click on Computer > Manage > LHS pane > Disk Management.

Select Action tab > Attach VHD.
How to initialize the Virtual Hard Disks.
Right click on Computer > Manage > LHS pane > Disk Management.
Select Action tab > Attach VHD. Specify location. The system will then mount the VHD file.

Next right click on the VHD and select Initialize Disk.
Select the Partition style > OK. The system will now initialize the disk.
Next right click the unallocated space in the VHD & select New Simple Volume. Follow the instructions.
Thats it. Open your explorer and you will see your new VHD.
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