Install Windows 7 Beta 1 in Virtual PC 2007 SP1, DVD drive not required
First, Download and install Microsoft Virtual PC 2007 SP1. You can download Microsoft Virtual PC 2007 SP1 software from the following link: http://www.microsoft.com/windows/downloads/virtualpc/default.mspx Since Virtual PC only supports 32-bit guest operating systems. You need to Download Windows 7 beta 32 bits version.

