"Disk2vhd" is a free utility released by Sysinternals team at Microsoft which allows you to create VHD versions of physical disks. If you are not aware of these technical terms, lets help you in understanding them.
VHD refers to "Virtual Hard Disk" which is a file format used in Microsoft virtual machines. So by using "Disk2vhd" you can create VHD versions of your HDD which can be used in Microsoft Virtual PC or Microsoft Hyper-V virtual machines (VMs).

Disk2vhd supports Windows XP SP2 and higher including 64-bit editions.
You can download it using following link:
This article was posted by VG in following section: Software, Windows 7, Windows Vista, Windows XP.
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Pet
Cool.. Will definately use this in the future..
Joshua
Cool! Very handy.
VMWare has had this sort of thing for a while. It is about time it was easily available for Virtual PC.
SuperSoldier
It doesn't work on my main pc, though it works on my secondary pc. it says VSSAPI.DLL is missing.
VG
^^ Download the required file from following link and paste it in "Windows\System32" folder.
Chris
I also am getting an vssapi.dll is missing error. I have ensured that the file is present and path is good to the system32 directory. I have also confirmed operation of the vss and microsoft shadow copy service. My platform is disk2vhd 1.63 on 2008r2 sp1 datacenter core.