3. Click Next to progress to the Options window, then select ‘Create a Virtual Machine' and click Next again. You'll need to enter a name for your virtual machine - a sensible option would be the name of the OS that you intend to install in it, but choose what you like provided it's easy to remember. Click Next.
4. Select the OS you intend to install from the drop-down menu. Click Next and, when the menu appears, you'll see a list of supported guest operating systems. If yours isn't in the list select Other. Most OSes that run on PC hardware can be installed under Virtual PC 2007, with the notable exception of Apple Mac OS.
5. Virtual PC will now calculate how much virtual memory and how large a virtual hard disk your guest OS will require, then give you the option to increase that amount of memory. Unless you've a good reason to do otherwise, select ‘Using the recommended RAM' before clicking Next.
6. Under ‘Virtual Hard Disk Options', select ‘A new virtual hard disk' and click Next. You must now either accept the default virtual hard-disk capacity offered, or allocate more space to the apps you're going to use and the amount of data you anticipate storing. Make your selection accordingly and click Next, then Finish.