Can I migrate my existing physical WinXP environment (on a single c: drive) to a VHD via Disk2VHD and then run it on my new Windows 7 laptop as a virtual machine?
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Google the term "P2V" (Physical to Virtual) to narrow down hits on this subject. – kmarsh Mar 17 '10 at 20:26
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I've done the same thing but with VMware's converter and VMware Player / Workstation. Worked great.
The only real gotcha, that I'm aware of, is your XP license. If it is OEM, you're probably hosed -- or will at least have to call Microsoft to plead for activation. Converting to a VM triggers enough hardware changes that you (almost always) have to reactivate your license.

Chris_K
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Microsoft's Disk2VHD is what you are looking for
convert your physical machine to a virtual machine
http://technet.microsoft.com/en-us/sysinternals/ee656415.aspx
Good Luck
HTH

Tom
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