About creating virtual machines
Virtual machines running in Microsoft Virtual PC use a virtual hard disk image instead of a physical hard disk to store information. When an operating system is installed in a virtual hard disk image, that virtual hard disk image becomes a virtual machine. Otherwise, it remains an empty virtual hard disk image that can be used for extra storage for an existing virtual machine. For more information, see About creating virtual hard disk images.
Typically, you create an initial virtual machine the first time you install Virtual PC. You can then create additional virtual machines by using the Create New PC Assistant in Virtual PC.
When you use the Create New PC Assistant to create a new virtual machine, you select a method of installation, an operating system, and a virtual hard disk image format.
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