How to Compact your Virtual PC Hardisk Files (VHD)

1. Download and install Virtual PC Service Pack 1.
2. Defragment your guest operating system.
3. Install Guest Additions if its not already
4. From the CD menu, select Capture ISO Image and browse to the Virtual PC additions directory, which is %ProgramFiles%\Microsoft Virtual PC\Virtual Machine Additions by default.
5. Mount Virtual Disk Precompactor.iso. By default with auto-run enabled, the precompactor will start automatically.
6. When it has finished, unmount the ISO from the CD menu.
7. Run the Virtual Disk Wizard from the File menu and follow the instructions to compact your VHD file.