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Configure a VHD (Virtual Hard Drive)

Virtual Hard Disks: 

Windows 7 has a new feature called VHD Boot. This feature allows you to boot your entire Windows from a Virtual Hard Disk (VHD) file. There are various advantages of this feature, like:
•    The configurations and settings of your entire system are included in one file – .VHD file.
•    One VHD file can be based on another one. So if you have different systems, you can create a base copy of Windows 7 on a VHD and make all others incremental. This saves a lot of disk space.
But this feature can only be used on Windows 7, Windows Server 2008 R2, or later operating systems. The operating systems which came before Windows 7 do not support VHD. With VHD your system suffers a performance decrease of about 3%. Windows' hibernate function and Bit Locker configurations are not supported by VHD. Bit Locker can be used within the guest VHD, but not on the volume where the VHD resides. Also, with VHD, features like Aero don’t work because the Windows Experience index is not supported.

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