I'd like to create a VM in Virtual PC 2007 for use as a development environment/sandbox for an existing ASP.NET application in Visual Studio 2005/SQL Server 2005 (and VSS for source control).

I'm thinking that I need to create a 'base' copy of the environment (with the os, Visual Studio, and Sql Server), and then copy that to a 'work' version that I do actual development in. I would be sharing this VM with one or two other developers who would be working on different parts of the app.

Is this a good idea? What is the best way to get my app/databases in and out of the VM and the changes I make into VSS? Is it just a copy from the host location to the VM share and back again? How do I keep everything synchronized?

Thanks!