In Windows 7 Enterprise or Ultimate, you can use a Native Virtual Hard Disk (VHD) to host the running operating system without any other parent operating system or virtual machine. Windows 7 disk management tools, such as Diskpart and Disk Management, can be used to Create Native Virtual Hard Disk file. You can deploy a Windows 7 WIM image to a Virtual Hard Disk and the VHD file can be copied to multiple systems. Windows Boot Manager can be configured for a native boot of the Virtual Hard Disk Windows image.
Previously, Virtual Hard Disk files were used in virtualization platforms, such as Hyper-V, Virtual Server, and Virtual PC, and this facility is still available. However, in Windows 7, you can also create native VHDs on non-virtual computers.
To create a Native Virtual Hard Disk (VHD) in Windows 7, follow this steps:
1. Right-click My Computer and click Manage to open Computer Management. Shown in below picture
2. Select Disk Management, then right-click Disk Management and click Create VHD. Shown in below picture
This opens the Create And Attach Virtual Hard Disk dialog box.
3. Select the location where you want to create the VHD file (first making sure you have sufficient free space). Shown in below picture
Typically, you place the VHD on a second internal or external hard disk (although this is not essential). You then specify the VHD size and format settings. Microsoft recommends the default Fixed Size setting, but you can select Dynamic Expanding if you do not want to allocate the disk space.
Fixed Size gives better performance and is more suitable in a production environment.
4. When you click OK, a newly attached (mounted) VHD is created.
5. To initialize the disk, right- click the icon beside the disk designation and click Initialize Disk. Shown in below picture
This opens the Initialize Disk dialog box. You select the partition and click OK. Typically, you do not need to change the default settings. The status of the disk then changes to Online.
Now you have successfully Create Native Virtual Hard Disk (VHD) File in Windows Seven.
Extra : To create a new simple volume on a VHD by right-clicking Unallocated and selecting New Simple Volume. Shown in below picture
This starts the New Simple Volume Wizard. You specify size, file system, and drive letter; label the drive; and click Finish to create the VHD.