You can now create and manage virtual hard disks files in Windows 7 as if they were real disks. This can allow you to use a live Windows installation on the virtual disk without the need to boot the virtual Computer. To create a virtual disk you have to press the Windows Key, right-click on Computer, then go to Manage -> Disk Management -> Action -> Create VHD. There you can specify the location and size of your virtual hard disk file.

To attach the virtual disk file, press the Windows Key, right-click Computer, then go to Manage -> Disk Management -> Action -> Attach VHD and you have to specify the location and if it’s read only or not.

To initialize a virtual hard disk, press the Windows Key, right-click on Computer, go to Manage -> Disk Management -> Action -> Attach VHD, specify the location, click Ok, then right click on the virtual disk and click on Initialize Disk. Select the partition style you want to use and then right-click on the unallocated space and click “New Simple Volume” and follow the instructions wizard. Now, a new hard drive appears in Windows Explorer and you can use it as a real partition.