We use VPCs all the time around the company to experiment with beta bits. Today I'm running into a problem trying to install the Orcas CTP on a VPC (running in virtual server) that has a dynamic disk.

How can a dynamic disk run out of space? -- isn't it supposed to grow as needed? (I converted this one to dynamic from fixed, not sure yet if that has something to do with it.)

Anyway - when poking around, found the article below, mostly about using differencing disks. We just saw this techinque used recently for some BizTalk work. The idea is cool - create a single VHD with the base OS and core software for all VPCs, then use differencing disks for everything you ADD after that.

(Article also has some links to other good VPC tips sites)

HOWTO: Use Virtual PC's Differencing Disks to your Advantage