I first created system images using Windows backup then realized that those VHD files cannot be booted using Virtual PC.
So I found the utility Disk2VHD and spent a few hours making a new VHD and tried booting it with Virtual PC but it too cannot boot.
It is giving the error: PXE-E53: no boot filename received
I followed some instructions found online on going into the Virtual PC settings and ensuring I have the right vhd set up which I do, I also have integration features unavailable.
I then went into the Virtual PC's BIOS and in The Boot menu and it says under Hard Disk Drives [Virtual HD] and in the boot priorities the 1st boot device is the Hard Drive.
This VHD is created from my C: which is my main Windows install (Windows 7 Pro 64-bit)
The whole goal of this is I want to format my drive and install new Windows but I wanted to be able to make a bootable image I could go into later to recover things as needed and see how stuff was setup if I forgot.