Do you know? Unlike other Windows operating system, Windows 7 supports the creation of Virtual Hard Disk (VHD) without any third-party software. It’s a very simple to create a VHD in Windows 7. Just follow the following procedure to create a new VHD:

1. Go to Disk Management Utility by right-clicking on the Computer icon on desktop and select manage, or by typing diskmgmt.msc in the Start menu search field. Alternatively, you can also go to the Disk Management Utility from the Control Panel (Control Panel > System and Security > Administrative Tools > Computer Management > Storage > Disk Management).

2. In the Disk Management window, navigate to Action > Create VHD.

3. In the next window, specify the folder or drive location for creating a new VHD file.

4. Specify the size of the VHD. Make sure that you have enough free space before entering the VHD size. There are two options for selecting VHD formats: Dynamically expanding and Fixed Size (recommended).

In the dynamically expanding format, the size of the VHD expands to a fixed maximum size as data is saved to it. However, the disk size doesn’t compact automatically when data is deleted. As the name suggests, fixed size VHD format uses a fixed amount of space regardless of the amount of the data stored in it.

5. Click on OK button to create a VHD file, after a few seconds of processing you can see a new VHD file in the location you specified.