As a follow up to the previous post, this method was blogged well before Microsoft released WIM2VHD and I still use this method to create Windows Server 2008 R2 VHD using either ISO mounted or the actual media.

 To be honest, a vhd is being created right now using this method as I blog this! Building a SharePoint farm in Hyper-V.. so you may want to follow the series…

So how do you create an operating system vhd from a media? I will copy the content from Ravikanth’s blog post as is – as I mentioned above about this method having been blogged way before we saw WIM2VHD

Source: http://www.alpesh.nakars.com/blog/create-an-operating-system-vhd-from-dvd/