VHD Compatibility With Virtual Server 2005 and Virtual PC 2004/2007
Hyper-V, like Microsoft Virtual Server and Windows Virtual PC, saves each guest OS to a single virtual hard disk file with the extension .VHD, except in Windows 8 and Windows Server 2012 where it can be the newer .vhdx. This file contains the entire guest OS, though other files can also be configured to allow "undo information" etc.
Older .vhd files from Virtual Server 2005 and Virtual PC 2004/2007 can be copied and used by Hyper-V, but any old virtual machine integration software (equivalents of Hyper-V Integration Services for other virtualization software) must be removed from the virtual machine. After the migrated guest OS is configured and started using Hyper-V, the guest OS will detect changes to the (virtual) hardware. Installing "Hyper-V Integration Services" installs five services to improve performance, at the same time adding the new guest video and network card drivers. Consequently, Windows guests may require re-activation.
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