I don't see why you couldn't place the VDH in the OS root. I'm got mine placed in C:\Shared\ folder in Vista.
Two quick questionsů
- Can I install a Win7 x64 VHD into a Vista x86 OS root.
- Can I install it into C:\VHDs
e.g. C:\VHDs\Windows7.vhd (if so can/does that directory have system/hidden attributes?)
As far as x64 vs x86, I'm going to try that on my sis's laptop, which has x86 vista pre-installed. Will post findings here.
The directory will not have hidden/system attributes on it's own. Of course, you won't be able to delete the VHD file while you've got Windows 7 loaded. When in Vista, however, you can delete that file accidentally. I'm sure you can make it system/hidden on your own while in Vista though.