A lot of the performance issues we can experience with Virtual PC are the result of drive fragmentation. These steps will defrag your Virtual PC hard drive, compress it to a smaller file size, and optimize its location on the host drive.
How to Defrag:
1. Defrag your Virtual drive.
a. Launch the Virtual Machine, log in as an administrator
b. Remove any Installation temporary folders or un-needed folders
c. Empty the Recycle Bin
d. Go to Start/Programs/Accessories/System Tools and run Disk Defrag
e. This can take 10 minutes to 30 minutes to run
f. Do this at least 3 teams, until it defrags quickly
2. "Zero out" your
3. Compact your Virtual Drive
a. Shut down any running Virtual PCs
b. Under the Virtual PC console, select “File” then “Virtual Disk Wizard”
c. Select “Examine or Modify existing disk image”
d. Select the disk image file you wish to compact
e. Select “Compact the disk image”
f. Select “Use original file” (or a separate file if you require)
g. Finishing the Wizard will compact the file. This may take a long time
4. Defrag your host drive (the one the .VHD files are sitting on)
a. Shut down all applications on your host.
b. On your host go to Start/Programs/Accessories/System Tools and run Disk Defrag
c. Do this at least 3 times as well - until it defrags quickly