The Command Sequence
1, diskpart
2, create vdisk file=c:\vhd\win7.vhd maximum=30000 type=fixed
3, sel vdisk file=c:\vhd\win7.vhd
4, attach vdisk
5, list disk
6, sel disk 3
7, create part primary
8, sel part 1
9, active
10, format fs=ntfs quick
11, assign
12, exit
13, exit command console
14, install to the newly create 30GB virtual hard disk whick looks just like a partion to windows setup
Other references