I found this article the other day when playing around with PXE booting and BDD 2007. In order to build an image your reference machine needs to PXE to a WinPE environment. Check this out, this explains how to get your Virtual PC 2007 machine to PXE. Thanks http://blogs.msdn.com/virtual_pc_guy/archive/2007/03/13/understanding-boot-order-with-virtual-pc-2007.aspx
