For a beta of a OS Update bugs on this small of a magnitude sound pretty good.
I mounted a VHD in my Windows 7 Boot manager and it worked great. Additionally, I was able to boot that same VHD in Virtual PC, as long as a hard another VHD as primary of it to serve as it's Boot Manager. Of course, I still have to sysprep to switch from the Physical Hardware to the Virtual PC virtual hardware. I miss hardware profiles. I wish Windows had a Default Virtual PC hardware profile.
How do I suggest this to Microsoft?
I would also like to figure out how to replicate the above Physical Boot (Windows 7 Boot Manager) and Virtual Boot (Virtual PC or Server) with Windows XP as the virtualized OS. Since the Windows Boot Manger allows the addition of a VHD and the addition of a NTLoader entry but not the combination of the two, I didn't see an easy way to have an WinXP VM.
If I make any progress, I'll reply again or post to
http://nersp.nerdc.ufl.edu/~rbache/blog/index.html.