Windows 7 - Natively Booting from a .VHD file (Virtual PC image)

Most important thing to keep in mind is that we currently cannot boot from any kind of .VHD. Actually, I have just managed to boot from a Windows 7 installed on a new .VHD, and I installed it right from the Windows 7 DVD. We can do a similar process with "Windows Server 2008 R2 (beta)" installed on a .VHD file, as well.