The below steps shows how to create a bootable VHD install for Windows 7 or Windows 2008 R2. With this step x64 OS can be installed, but requires a VT enabled machine in the BIOS.

1. Insert the Bootable Install DVD to the drive[Windows 7 or Windows 2008 R2]

2. Restart the machine, make sure the boot order is to DVD first in the BIOS to boot in DVD.

3. Once the windows is loaded, Select next in the Language selection screen

4. In the Install Now screen, Press Shift+F10 to enter into the command prompt

5. Type Diskpart and Enter

6. Type Create vdisk file=”c:\vhd\win7x64.vhd” type=expandable maximum=<vhd size in MB>

7. For differencing vhd shd add the parent=”VHD path” in the above command (optional)

8. Press Enter and Type Select vdisk file=”c:\vhd\win7x64.vhd”

9. Type attach vdisk

10. Press Alt+Tab

11. Now click on the Install Now Button

12. In the Drives windows select the virtual disk which we created, usually will be at the last. Ignore the warning which appears at the bottom.

13. Done, then follow the wizard to finish installation.