Once you have downloaded a vhd from Microsoft’s site, you can create a virtual machine. This will be your operational application. You create a vmc from the vhd. Let me say that again. The virtual machine console file is created from the virtual hard drive.
Here are the steps:
1. In the virtual console select File from the menu. Select Virtual Disk Wizard. Now a wizard starts, so select Next.
2. Create a new virtual machine
3. Add the Name and location, the path where the file will be stored at.
4. Select the operating system, and your options are win98 to Vista, and your servers are NT up to Windows Vista
5. Or you set up a server with OS selections from NT Server to Server 2008
6. Finally you can choose how much RAM you want your VM to have. Note, your VM can’t have more RAM than your computer RAM.
7. Now you select the VHD; browse to the location where your vhd resides.
8. You will also have to locate the Base file,that will be associated with the vhd. The Base file is another vhd file that can be used with multiple vhd files. That is why it is called Base.
9. Now you are done.
Now you can launch your VMC file and start the operating system.
To see how the virtual machine set up works, images are included below to see the steps necessary. The images begin with the virtual machine console, without any virtual machines. The last image is with a virtual machine running Windows XP.