How to Create a VHD in Windows 7?

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Nowadays, Microsoft Launches Windows 7. Are you ready to upgrade to Windows 7? Have you ever wished you had an extra Hard Disk to store files, share, or set aside as an encrypted vault? In fact, unlike previous Windows versions, with the the new features in Windows 7, it is said that people can create a new Virtual Hard Disk(VHD). But I am not familiar with it. Could give me the steps to creat a VHD in Windows 7? How to create a Virtual Hard Drive in Windows 7?