I've tried several times, unsuccessfully, to create a Microsoft (.VHD) Windows 7 virtual machine using Paragon Disk Manager Suite 12. The .VHD file creates fine without errors. However, trying to startup the .VHD in Windows 7 Virtual PC, the machine "starts", the fake BIOS screens can be accessed, but after the POST the cursor bounces to near the top of a black screen. The O/S never loads nor displays any type of error, just the cursor. There's not much to do wrong I think in creating the VM. I did choose a VM disk size well below the limit of a .VHD disk (128GB).