Boot from USB VHD with Windows 7 by converting you’re current Windows installation to a VHD
Use the Microsoft Tool: Disk2vhd: http://technet.microsoft.com/en-us/sysinternals/ee656415.aspx to convert you’re current Windows installation to a VHD. Copy the created disk to you’re USB disk on E:\VHD Open an elevated command prompt right click C:\Windows\System32\cmd.exe and click