If you want to “native boot” from an USB VHD file with Windows 7, without installing a host OS, follow the tutorial on:

http://www.windows7hacker.com/index.php/2009/08/windows-7-vhd-native-boot-without-any-hosting-operation-system/

Boot from the Windows 7 DVD, when it comes to the first screen, press SHIFT+F10 and you will get the comment window, the follow the steps:

  • C:\>DISKPART
  • DISKPART>SEL VDISK File=C:\VHD\Win7.vhd
  • DISKPART>ATTACH VDISK
  • DISKPART>LIST VOL (This lists the drive letters and mappings, assuming F: maps to the VDISK)
  • DISKPART>Exit
  • C:\>Bcdboot F:\Windows

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