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Virtual PC is a Microsoft program that allows you to run an operating system in a window on top of the primary operating system--Windows XP on top of Windows Vista, for instance. An image of a virtual PC is a snapshot of everything that is installed on the virtual system. The image can be used to restore a virtual PC if it gets damaged or erased.
Launch Virtual PC. Click File and then Virtual Disk Wizard. Click Next.
Select "Create a new virtual disk."
Click "a virtual hard disk."
Click "Browse." Decide where you would like to save the Virtual PC image and click Next, followed by Finish.
eHow Article: How to Create a Virtual PC Image
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