Last one week I had pretty hard time setting up new Microsoft Office SharePoint Server 2007 new image (VHD) available from Microsoft recently. Here is the link in case if you are not aware of it. The previous image was running fine but I recently upgraded my machine to Windows 7 Professional and with this new image and Virtual PC it would never work. What I man by this is the OS tries to load up but never does. Old MOSS image would load up just fine.
The workaround I did for this was to download Sun VirtualBox. With this the image loads up just fine.