This command line demonstration explains how to build a bootable Windows 7 VHD image from a Windows 7 "install.wim" file using diskpart.exe and imagex.exe. The demonstration continues with an explanation of how to configure the boot entry using bcdedit.exe and explains the limitations of VHD Boot. See the Windows 7 VHD Overview page for more information about this technology.
Windows 7 VHD Boot Demonstration
Windows Virtual Hard Disk | Imaging | Windows 7