I ran a Windows 7 Deployment workshop for the Western Quebec school board several weeks ago. The workshop audience consisted of a mixed level ITPRO audience but they grasped the deployment concepts fairly quickly.
Once the basics of deploy, capture, package, etc were done we moved to some cooler topics like boot from VHD and P2V conversion. We tested out the P2V conversion tool from Sysinternals but ran into limitations from the Virtual PC hard limit of 127GB. The PCs that we were converting had volumes on a single partition of over 500GB some of which were 1TB drives…
It seems that the limitation is present if the disk itself which you select your volumes from is more than 127GB. Even if the total space you select to convert is less than 127GB, somehow the VM knows that the VHD file was converted from a disk that was bigger than 127GB in size and Virtual PC will not support it.
A new version (1.62) was released on yesterday. I am hoping this particular limitation was bypassed.
http://technet.microsoft.com/en-us/sysinternals/ee656415.aspx