This is the process I use for duplicating a Virtual PC (on Windows 7):

1 - Create a new VPC. 2 - Install Windows 7 on the new VPC. 3 - Configure the new Windows 7 installation (install Windows updates, install applications, etc). 4 - Run Sysprep on the new VPC. 5 - Shut down the new VPC. 6 - Make a copy of the new VPC's VHD file. 7 - Create a new VPC, specify "use existing VHD file" in the wizard and provide the name of the copied VHD file.

Above works fine but there is one point that threw me off: During the OOBE for the duplicated VPC, when asked for a user name, I had to specify a different user name than the one I had specified for the base VPC. This makes sense because the copied VPC already has that user name. But what I did not understand is why I was asked for a new user name at all? Is it because it is part of the OOBE process and when the OOBE was designed by Microsoft, they did not think of the fact that base OS images could be copied?

Thanks -

-Todd