Windows 7: Using VHD Files

Windows 7 allows you to create and mount VHD (Virtual Hard Disk) files. These files were originally created for Microsoft's Virtual Machine (VM) technologies like Hyper-V and Virtual PC.  Using this feature you can directly access and edit the contents of these files.

Creating a VHD:

From the search box in the Start menu, type DISKMGMT.MSC then press Enter.
In the Disk Manager, in the Action